Indonesia to miss 2025 geothermal energy target, association warns - Asia News Network
Published December 15, 2025
Indonesia to Fall Short of 2025 Geothermal Energy Goals, Industry Association Warns
Indonesia is projected to miss its geothermal energy target for 2025, according to a warning issued by the Indonesian Geothermal Association (API). The country has set ambitious goals for developing its geothermal resources, yet the current pace of progress suggests that these targets may not be met.
The Indonesian government has aimed to increase the geothermal energy capacity to 7,200 megawatts (MW) by 2025. This target is part of the broader strategy to enhance the role of renewable energy in the national energy mix. However, as of now, the installed geothermal capacity stands at approximately 2,200 MW. This indicates a significant gap that needs to be addressed in order to meet the set goals.
API has expressed concerns over several factors contributing to the slow development of geothermal projects. One of the primary issues is the lengthy permitting process, which can delay projects significantly. Additionally, the association noted that financing remains a challenge, as many investors are hesitant to commit to geothermal projects due to the high upfront costs and perceived risks involved.
The association's chairman, Felix Siauw, highlighted that the government must take more decisive actions to streamline regulations and improve the investment climate for geothermal energy. He emphasized that without substantial changes, the country will struggle to attract the necessary investments to meet its geothermal targets.
Moreover, the API pointed to the need for enhanced collaboration between the government and private sector stakeholders. Such partnerships are essential for sharing knowledge, resources, and risks associated with geothermal development. The association believes that fostering a conducive environment for collaboration could accelerate project timelines and ultimately lead to a more robust geothermal sector.
In addition to regulatory and financial hurdles, the API also raised concerns about the lack of skilled workforce in the geothermal sector. Training and capacity-building initiatives are crucial to equip local professionals with the necessary skills to support the growth of this industry.
The Indonesian government has recognized the importance of geothermal energy as a clean and sustainable source of power. Geothermal energy is seen as a key component in achieving the country’s renewable energy targets, which include a commitment to derive 23% of its total energy supply from renewable sources by 2025.
Geothermal energy offers numerous advantages, including a stable and reliable power supply, low greenhouse gas emissions, and the potential for job creation in local communities. However, harnessing these benefits requires overcoming the current challenges faced by the sector.
As part of its efforts to boost geothermal energy development, the Indonesian government has introduced various incentives, including tax breaks and subsidies for geothermal projects. These measures aim to attract both domestic and international investors to the sector.
Despite these initiatives, the API warns that the current progress is insufficient to meet the ambitious 2025 target. The association is calling for urgent action from the government to address the existing barriers and enhance the overall investment climate for geothermal energy.
In conclusion, while Indonesia has significant potential for geothermal energy development, the path to achieving the 2025 target remains fraught with challenges. The collaboration between government, industry stakeholders, and the workforce will be vital in overcoming these obstacles and unlocking the full potential of Indonesia's geothermal resources.
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