Pertamina boosts Indonesia’s geothermal capacity - Upstream Online
Published January 21, 2026
Pertamina Expands Indonesia’s Geothermal Capacity
In a significant move to enhance Indonesia's renewable energy portfolio, Pertamina, the state-owned oil and gas company, is set to increase the country's geothermal capacity. This initiative aligns with the nation’s commitment to diversify its energy sources and reduce reliance on fossil fuels while capitalizing on its rich geothermal resources.
Indonesia is recognized as one of the world leaders in geothermal energy production, boasting an estimated potential of around 29 gigawatts (GW). Currently, the country has an installed geothermal capacity of approximately 2.1 GW, making it the second-largest producer of geothermal energy globally, following the United States. Pertamina's efforts are aimed at tapping into this vast potential to meet the growing energy demands and contribute to sustainability goals.
Investment and Development Plans
Pertamina has announced plans to invest heavily in geothermal projects over the coming years. The company aims to develop a total of 1,000 megawatts (MW) of new geothermal capacity by 2028. This ambitious target is part of a broader strategy to increase the share of renewable energy in Indonesia’s energy mix to 23% by 2025, as stipulated in the national energy policy.
The company has already initiated several projects, including the development of the Ulubelu and Karaha Bodas geothermal power plants. These projects are expected to significantly contribute to the national grid and help reduce greenhouse gas emissions. The Ulubelu plant, for instance, has a capacity of 220 MW and is already operational, while the Karaha Bodas plant, with a capacity of 30 MW, is also in the pipeline.
Geothermal Resource Exploration
To support its expansion plans, Pertamina is actively engaged in exploring new geothermal resources across the archipelago. The company has identified several key locations with high geothermal potential, including regions in Sumatra, Java, and Sulawesi. These areas are known for their volcanic activity, providing ideal conditions for geothermal energy production.
In addition to exploration, Pertamina is also focusing on enhancing its existing geothermal fields through advanced technologies and improved extraction methods. This includes the implementation of Enhanced Geothermal Systems (EGS) that can increase the efficiency of energy extraction from geothermal reservoirs.
Partnerships and Collaborations
Pertamina recognizes that collaboration is essential for the successful development of geothermal energy projects. The company is seeking partnerships with both domestic and international firms that specialize in geothermal technology and project development. These collaborations aim to leverage expertise and resources to accelerate the deployment of geothermal energy solutions.
Furthermore, Pertamina is engaging with local communities to ensure that geothermal projects are developed in a socially and environmentally responsible manner. This includes conducting environmental impact assessments and ensuring that local populations benefit from the economic opportunities created by geothermal projects.
Challenges and Opportunities
While the potential for geothermal energy in Indonesia is immense, the sector faces several challenges. These include high upfront capital costs, regulatory hurdles, and the need for skilled labor in the geothermal industry. Pertamina is addressing these challenges by advocating for supportive government policies and investment incentives that can facilitate the growth of geothermal energy.
Moreover, the company is investing in workforce development programs to train the next generation of geothermal engineers and technicians. By building local expertise, Pertamina aims to create a sustainable workforce that can support the long-term growth of the geothermal sector.
Future Outlook
The future of geothermal energy in Indonesia appears promising, with Pertamina leading the charge. The company’s commitment to expanding geothermal capacity is not only vital for meeting the country’s energy needs but also plays a crucial role in achieving Indonesia's climate goals. By increasing the share of renewable energy, Pertamina is contributing to a more sustainable energy future for the nation.
As the global demand for clean energy continues to rise, Indonesia’s geothermal resources present a unique opportunity for the country to position itself as a leader in renewable energy production. With Pertamina's strategic investments and development initiatives, the nation is well on its way to unlocking the full potential of its geothermal energy resources.
In conclusion, Pertamina's efforts to boost Indonesia's geothermal capacity are a significant step toward a more sustainable energy landscape. By investing in new projects, exploring untapped resources, and fostering partnerships, the company is poised to play a pivotal role in the growth of geothermal energy in Indonesia.
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