Wednesday, 24 September 2025 08:37

Indonesia Poised to Become a Global Leader in Geothermal Energy Production

On 17 September 2025, at the opening of the Indonesia International Geothermal Convention & Exhibition (IIGCE) 2025 in Jakarta, Minister of Energy and Mineral Resources Bahlil Lahadalia stated that Indonesia has significant geothermal reserves as a new and renewable energy source, the largest in the world, with only around 10% currently being managed. This highlights a significant potential, with 90% of its capacity yet to be utilised. Considering the significant geothermal potential in Indonesia, Bahlil has called for the immediate implementation of auctions for Geothermal Working Areas (Wilayah Kerja Panas Bumi/WKP). The Ministry of Energy and Mineral Resources has taken further measures through the streamlining of licensing and investment regulations to facilitate the increased use of geothermal energy. Previously, in 2024, the Genesis digital platform for geothermal management was launched. In 2025, the Genesis platform will be used for WKP auctions. 

Furthermore, the government will construct 48,000 circuit kilometres through the 2025-2034 Electricity Supply Business Plan (RUPTL). This initiative aims to boost the development of new and renewable energy sources and ensure the availability and acceleration of transmission networks connecting energy sources and electricity grids. At the IIGCE 2025 event, the Minister of Energy and Mineral Resources was also witness to the signing of seven Memorandum of Understandings (MoU) in the education/capacity building sector and commercial cooperation between state-owned enterprises, national private enterprises, and foreign enterprises in terms of investment in technology development and financing commitments with a capacity of 265 MW and a total investment of USD 1.5 billion or IDR 25 trillion.

Source: https://www.esdm.go.id/id/media-center/arsip-berita/indonesia-siap-jadi-negara-produsen-listrik-panas-bumi-terbesar-dunia

 

 

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