Japan's Inpex plans to double geothermal power capacity in Indonesia - Reccessary
Published December 17, 2025
Inpex of Japan to Expand Geothermal Power Capacity in Indonesia
Inpex Corporation, a leading Japanese oil and gas exploration and production company, has announced its intention to significantly enhance its geothermal power generation capacity in Indonesia. The company aims to double its output from 1,000 megawatts (MW) to 2,000 MW, aligning with Indonesia's ambitious energy transition goals and commitment to renewable energy development.
This expansion is part of Inpex's broader strategy to invest in renewable energy sources, particularly geothermal energy, which is abundant in Indonesia due to its location on the Pacific Ring of Fire. The country is home to some of the world's largest geothermal reserves, making it a prime location for harnessing this sustainable energy source.
Investment and Development Plans
Inpex plans to invest approximately $1.5 billion in its geothermal projects in Indonesia over the coming years. This investment will focus on developing existing geothermal fields and exploring new sites to maximize the potential of this renewable energy source. The company has already made significant strides in its geothermal initiatives, with projects in various stages of development.
One of the key projects is located in the Tangkuban Perahu area of West Java, where Inpex has been actively working to enhance its geothermal production capabilities. The company’s efforts in this region are expected to contribute significantly to Indonesia’s energy supply, supporting the government’s target of increasing the share of renewable energy in the national energy mix to 23% by 2025.
Geothermal Energy in Indonesia
Indonesia is recognized as a global leader in geothermal energy production, with the potential to generate over 29,000 MW from its geothermal resources. Currently, the country ranks second in the world for geothermal electricity generation, following the United States. The Indonesian government has been proactive in promoting geothermal energy as part of its commitment to reducing greenhouse gas emissions and combating climate change.
Geothermal energy offers several advantages, including a reliable and stable power supply, as it is not subject to the fluctuations seen in solar or wind energy generation. Additionally, geothermal power plants have a smaller land footprint compared to other renewable energy sources, making them an attractive option for energy production in densely populated areas.
Regulatory Environment and Support
The Indonesian government has implemented various policies and incentives to encourage investment in renewable energy, particularly in the geothermal sector. These include feed-in tariffs, tax incentives, and streamlined permitting processes to facilitate the development of geothermal projects. Inpex’s expansion plans are supported by this favorable regulatory environment, which aims to attract both domestic and foreign investment in renewable energy.
As part of its commitment to sustainability, Inpex is also focused on minimizing the environmental impact of its geothermal projects. The company employs advanced technologies and best practices to ensure that its operations are environmentally responsible, including measures to protect local ecosystems and reduce emissions associated with geothermal energy production.
Future Outlook
With its plans to double geothermal power capacity in Indonesia, Inpex is positioning itself as a key player in the country’s renewable energy landscape. The company’s efforts align with global trends towards decarbonization and the transition to cleaner energy sources. As Indonesia continues to develop its geothermal resources, Inpex is well-positioned to capitalize on the growing demand for sustainable energy solutions.
The expansion of geothermal power capacity is expected to not only enhance energy security in Indonesia but also create job opportunities and stimulate economic growth in the regions where these projects are developed. As Inpex moves forward with its plans, the company is committed to engaging with local communities and stakeholders to ensure that the benefits of geothermal energy are shared widely.
Conclusion
Inpex's commitment to doubling its geothermal power capacity in Indonesia highlights the company's dedication to renewable energy and sustainability. As the world increasingly shifts towards cleaner energy sources, Inpex's initiatives in Indonesia serve as a model for other companies looking to invest in renewable energy projects. The successful implementation of these geothermal projects will play a crucial role in Indonesia’s energy transition and contribute to global efforts to combat climate change.
In summary, Inpex's plans to expand its geothermal capacity are not only a significant step for the company but also for Indonesia's energy future. With continued investment and development in the geothermal sector, Indonesia is poised to strengthen its position as a leader in renewable energy production.
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