By Cepi Setiadi
The Indonesian government estimates that more than US$26 billion in investment will be required over the next decade to meet its ambitious target of adding 5,200 megawatts (MW) of new geothermal power capacity, as part of its energy transition roadmap toward net-zero emissions by 2060.
Each megawatt of geothermal capacity development is projected to require around US$5 million, according to Gigih Udi Atmo, Director of Geothermal Energy at the Directorate General of New Renewable Energy and Energy Conservation (EBTKE), Ministry of Energy and Mineral Resources (MEMR).
“Our geothermal roadmap is ambitious, with capacity expansion expected to nearly double the current installed capacity in the next 10 years,” Gigih said during the “APDN Database Registration and Supporting Business Registration (RUP)” socialization event in Jakarta on Thursday (July 24). “Developing 1 MW of geothermal capacity requires an investment of approximately US$5 million,” he added.
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Gigih stated that geothermal is seen as a strategic component in Indonesia’s national energy transition framework, especially in replacing fossil fuel-based baseload power plants. “In the future, as we move toward our net-zero emission target by 2060, geothermal will play an increasingly central role in replacing conventional baseload sources like coal, alongside other renewables such as hydropower and possibly emerging clean energy technologies,” he explained.
Unlike solar or gas-fired power plants, geothermal power plants require extensive upstream development and exploration before generation units can be built. Gigih highlighted that geothermal resource development relies heavily on technical capabilities that already exist in Indonesia’s oil, gas, and mining sectors.
He added that geothermal offers a unique advantage as a non-intermittent renewable source, capable of running 24 hours a day, 7 days a week, with capacity factors exceeding 90% when properly developed. “This is empirically proven in Indonesia, where our current installed capacity has already surpassed 2,744 MW,” Gigih said.
Gigih also emphasized the growing involvement of oil and gas companies in supporting geothermal development, noting more than 155 MW of new geothermal capacity has come online in recent months. “One example is the Ijen Geothermal Project in East Java, recently inaugurated online by President Prabowo Subianto. Another 55 MW of new capacity was delivered by Pertamina Geothermal Energy (PGE), a subsidiary of Pertamina, which has actively expanded its geothermal portfolio as part of its transition strategy,” he said.
Editing by Reiner Simanjuntak
