Japan's Inpex plans to double geothermal power capacity in Indonesia - Reccessary
Published January 20, 2026
Inpex of Japan to Expand Geothermal Power Capacity in Indonesia
Inpex Corporation, a prominent Japanese oil and gas exploration company, has announced its intention to significantly enhance its geothermal power generation capacity in Indonesia. The company aims to double its existing capacity, reflecting a deep commitment to renewable energy development in the region.
The initiative is part of Inpex's broader strategy to diversify its energy portfolio and align with global trends toward sustainable energy solutions. Indonesia, which possesses substantial geothermal resources, is seen as a key area for the company’s expansion efforts.
Geothermal Energy Potential in Indonesia
Indonesia is recognized as one of the world leaders in geothermal energy potential. The country is home to approximately 40% of the world's geothermal reserves, with an estimated capacity of around 29 gigawatts (GW). Currently, only about 2.1 GW of this potential has been harnessed, indicating a significant opportunity for growth in the sector.
Inpex has been active in the geothermal sector in Indonesia for several years. The company's existing geothermal power plants are located in the North Sumatra region, where it has been working to develop sustainable energy solutions that can contribute to the nation’s energy needs.
Plans for Capacity Expansion
Inpex's plan to double its geothermal power capacity involves investing in new technologies and expanding existing facilities. The company aims to not only increase its output but also improve the efficiency and sustainability of its operations. The investment will focus on enhancing the infrastructure necessary to support increased geothermal production.
By doubling its capacity, Inpex is positioning itself to play a crucial role in Indonesia's transition to renewable energy. This move is expected to contribute to the country’s targets for reducing greenhouse gas emissions and increasing the share of renewable energy in its overall energy mix.
Government Support and Policy Framework
The Indonesian government has been actively promoting the development of renewable energy sources, including geothermal energy, as part of its commitment to achieving energy security and sustainability. The government’s policies encourage investment in renewable energy through various incentives and regulatory frameworks designed to facilitate the growth of the sector.
Inpex's expansion aligns with the Indonesian government's goals to increase the contribution of renewable energy to 23% of the national energy mix by 2025. The government has set ambitious targets for geothermal development, aiming to increase installed geothermal capacity to 7.2 GW by 2025.
Environmental and Economic Impacts
The expansion of geothermal energy capacity is expected to have significant environmental benefits. Geothermal energy is a clean and sustainable source of power that produces minimal greenhouse gas emissions compared to fossil fuels. By increasing its geothermal output, Inpex will contribute to reducing the carbon footprint associated with energy generation in Indonesia.
Additionally, the expansion of geothermal power generation is anticipated to have positive economic impacts. It will create job opportunities in the region, stimulate local economies, and provide a stable source of energy for communities. The development of geothermal resources can also attract further investment in related sectors, fostering overall economic growth.
Challenges and Future Outlook
While the potential for geothermal energy development in Indonesia is significant, there are challenges that must be addressed. These include issues related to financing, regulatory hurdles, and the need for skilled labor in the renewable energy sector. Inpex is committed to navigating these challenges and working collaboratively with the Indonesian government and local communities to ensure the successful implementation of its plans.
Looking ahead, Inpex's commitment to doubling its geothermal capacity in Indonesia is a strategic move that underscores the importance of renewable energy in the global energy landscape. As the company continues to invest in geothermal technology and infrastructure, it is poised to make a substantial contribution to Indonesia’s renewable energy goals and the global transition to sustainable energy.
Conclusion
Inpex Corporation's plans to double its geothermal power capacity in Indonesia reflect a significant step forward in the country's renewable energy journey. With its vast geothermal resources and supportive government policies, Indonesia is well-positioned to become a leader in geothermal energy production. The commitment from Inpex not only aligns with national energy goals but also represents a critical investment in a sustainable energy future.
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