Gunung Lawu in Indonesia no longer identified as a Geothermal Working Area - ThinkGeoEnergy
Published November 24, 2025
Gunung Lawu in Indonesia No Longer Designated as a Geothermal Working Area
In a significant development concerning geothermal energy exploration, the Indonesian government has officially removed Gunung Lawu from its list of designated Geothermal Working Areas (WKP). The decision has been documented in the latest regulation issued by the Ministry of Energy and Mineral Resources (ESDM) of Indonesia.
This decision comes as part of a broader reassessment of geothermal potential in various regions across the country. Gunung Lawu, which is situated on the border between Central Java and East Java, has been recognized for its geothermal potential. However, recent evaluations have led to the conclusion that further development in this area may not be feasible or economically viable at this time.
The Ministry's regulation, outlined in the official announcement, specifies that the area previously classified as a WKP will now fall under a different category, allowing for alternative land use and development opportunities. This change aims to streamline geothermal exploration efforts in Indonesia, directing resources towards areas with higher potential for successful geothermal energy production.
Indonesia has long been recognized as one of the world's leading countries in geothermal energy potential. With an estimated geothermal resource capacity of around 29,000 megawatts (MW), the nation holds approximately 40% of the world's total geothermal reserves. Despite this potential, actual geothermal energy production has been slow to materialize, with only about 2,100 MW currently operational.
The decision to delist Gunung Lawu as a WKP reflects the government's ongoing efforts to optimize the management of geothermal resources. By focusing on areas with proven reserves and favorable conditions for development, the Indonesian government aims to enhance the overall efficiency and effectiveness of its geothermal energy initiatives.
Stakeholders in the geothermal sector have expressed mixed reactions to the news. While some view the reassessment as a necessary step towards prioritizing more promising geothermal sites, others are concerned about the implications for local communities and the potential loss of investment opportunities in the Gunung Lawu region.
Geothermal energy is a critical component of Indonesia's renewable energy strategy, which aims to reduce reliance on fossil fuels and increase the share of renewables in the national energy mix. The government has set ambitious targets for renewable energy development, including a goal to reach 23% of the energy mix from renewable sources by 2025.
As part of this strategy, the government continues to explore and evaluate various geothermal sites across the archipelago. The focus is not only on increasing production capacity but also on ensuring that geothermal projects are sustainable and environmentally responsible.
In light of the recent changes regarding Gunung Lawu, the Ministry of Energy and Mineral Resources is expected to redirect its efforts towards other areas with higher geothermal potential. This includes regions such as Sumatra, which has been identified as a hotspot for geothermal exploration and development.
Sumatra is home to several active geothermal power plants and has a significant number of WKPs designated for exploration. The government is keen on leveraging the existing infrastructure and expertise in these regions to boost geothermal energy production and contribute to the national energy goals.
Moreover, the Indonesian government has been working to enhance the regulatory framework surrounding geothermal energy development. This includes efforts to simplify the permitting process, attract foreign investment, and encourage public-private partnerships in the geothermal sector.
As the global demand for renewable energy continues to rise, Indonesia's geothermal resources present a valuable opportunity for both domestic energy security and international collaboration. The government is actively seeking partnerships with foreign investors and technology providers to advance its geothermal projects and tap into the vast potential of this clean energy source.
In conclusion, the removal of Gunung Lawu from the list of Geothermal Working Areas signifies a strategic shift in Indonesia's approach to geothermal energy development. While this decision may pose challenges for the local community and stakeholders, it also opens doors for more focused and efficient exploration efforts in regions with greater geothermal potential. The government remains committed to harnessing Indonesia's geothermal resources as part of its broader renewable energy agenda, aiming to position the country as a leader in sustainable energy production.