Indonesia’s geothermal governance must empower local people - Eco-Business
Published November 26, 2025
Empowering Local Communities through Indonesia's Geothermal Governance
Indonesia is recognized as one of the leading countries in geothermal energy production, possessing approximately 40% of the world's geothermal potential. With a total installed capacity of 2,138 megawatts (MW) as of 2021, the nation has made significant strides in harnessing this renewable energy source. However, despite its rich geothermal resources, the governance surrounding this sector has raised concerns, particularly regarding the involvement and empowerment of local communities.
The Indonesian government has set ambitious targets to increase the share of renewable energy in its energy mix, aiming for 23% by 2025. This includes a plan to develop 7,200 MW of geothermal power by 2025. However, the existing governance framework often overlooks the rights and interests of local communities, who are directly affected by geothermal projects. This situation has led to calls for a more inclusive approach that prioritizes the voices and needs of these communities.
The Importance of Local Community Engagement
Local communities play a crucial role in the success of geothermal projects. Their knowledge of the land, cultural practices, and social structures can significantly influence the implementation and sustainability of these projects. Engaging with local populations not only fosters trust but also ensures that the benefits of geothermal energy are equitably distributed.
Despite this, many geothermal projects in Indonesia have faced resistance from local communities due to a lack of transparency and inadequate consultation processes. Often, these communities feel marginalized and excluded from decision-making processes that directly impact their lives. In some cases, conflicts have arisen, leading to project delays and increased tensions between companies and local residents.
Current Governance Challenges
The current governance model for geothermal energy in Indonesia is characterized by a top-down approach, where decisions are made at the national level with little input from local stakeholders. This model has resulted in a disconnect between the government, energy companies, and local communities. The existing regulatory framework does not sufficiently address the rights of local communities, nor does it provide mechanisms for their participation in the planning and implementation of geothermal projects.
Furthermore, the lack of comprehensive data on the social and environmental impacts of geothermal projects has hindered effective governance. Without adequate information, it becomes challenging to assess the potential risks and benefits for local communities. This gap in knowledge can lead to decisions that do not align with the needs and aspirations of those who live in the vicinity of geothermal sites.
Recommendations for Improved Governance
To address these governance challenges, several recommendations have been proposed to empower local communities in the geothermal sector. First, it is essential to establish a legal framework that recognizes and protects the rights of local communities. This framework should include provisions for meaningful consultation and participation in decision-making processes related to geothermal projects.
Second, capacity-building initiatives should be implemented to educate local communities about their rights and the potential benefits of geothermal energy. By providing training and resources, communities can become active participants in the governance of geothermal projects, ensuring that their voices are heard and their interests are represented.
Third, fostering partnerships between local communities, government agencies, and energy companies can enhance collaboration and trust. These partnerships should focus on co-developing projects that take into account the needs and aspirations of local populations. By working together, stakeholders can create more sustainable and socially responsible geothermal projects.
The Role of Technology and Innovation
In addition to governance reforms, technology and innovation can play a vital role in empowering local communities. The use of digital platforms can facilitate better communication and information sharing between stakeholders. For instance, mobile applications can be developed to provide real-time data on geothermal projects, allowing local communities to stay informed and engaged.
Moreover, innovative financing mechanisms can be explored to ensure that local communities benefit economically from geothermal projects. This may include profit-sharing models or community investment funds that allow residents to invest in and receive returns from geothermal developments. Such initiatives can help build local capacity and foster a sense of ownership among community members.
Case Studies of Successful Community Engagement
There are several examples of successful community engagement in geothermal projects that can serve as models for Indonesia. For instance, in the Philippines, the government has implemented a comprehensive framework that requires public consultations and community participation in geothermal projects. This approach has led to more sustainable outcomes and reduced conflicts between companies and local communities.
Another example can be found in New Zealand, where the Ngāti Tūwharetoa iwi (tribe) has successfully partnered with geothermal companies to develop projects that respect their cultural values and environmental concerns. This collaboration has resulted in mutually beneficial outcomes, demonstrating the importance of integrating local knowledge and perspectives into geothermal governance.
Conclusion
As Indonesia continues to develop its geothermal resources, it is crucial to prioritize the empowerment of local communities through effective governance. By adopting a more inclusive approach that recognizes the rights and interests of these communities, the country can ensure that the benefits of geothermal energy are shared equitably. Through meaningful engagement, capacity-building, and innovative partnerships, Indonesia can set a precedent for sustainable geothermal development that not only contributes to its renewable energy goals but also uplifts local populations.
In conclusion, the future of Indonesia's geothermal sector hinges on its ability to transform governance practices and empower local communities. By fostering collaboration and ensuring that local voices are heard, Indonesia can harness its geothermal potential while promoting social equity and environmental sustainability.
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