Government Accelerates Development of Renewable Energy, Focuses on Geothermal Resources
The Indonesian government, led by Minister of Energy and Mineral Resources Bahlil Lahadalia, is committed to accelerating the development of renewable energy, particularly geothermal energy, which is essential for national energy security and green industry support. As global demand for clean energy rises, the government plans to increase geothermal capacity to 69.5 gigawatts by 2034. Efforts include streamlining the permitting process from 1.5 years to just 7 days. PT Pertamina Geothermal Energy also expressed readiness to expand geothermal use, targeting beyond electricity to include green hydrogen and ammonia.
Theia Market Signal Identification - AI AssistedIndonesia is poised to significantly enhance its renewable energy landscape, particularly through geothermal resources, as emphasized by Minister of Energy and Mineral Resources Bahlil Lahadalia. With an increasing global demand for clean energy driven by sustainability strategies across industries, the government is steadfast in its commitment to developing geothermal energy as a cornerstone of national energy security and a lynchpin for green industry initiatives.
Bahlil highlighted the growing need for clean energy not only for residential consumption but also for industrial applications, forecasting a substantial rise in demand across the entire supply chain. He pointed out that the government’s target, outlined in the 2025-2034 National Electricity Supply Business Plan (RUPTL), is to elevate the contribution of renewable energy to 69.5 gigawatts.
In alignment with this vision, Prof. Eniya Listiani Dewi, Director General of New Renewable Energy and Energy Conservation, underlined the government’s proactive measures to eliminate bureaucratic hurdles in the permitting process.
What once took 1.5 years to navigate has been reduced to just seven days through an online single submission system. This streamlined approach aims to add an additional 1 gigawatt of geothermal capacity over the next five years, positioning Indonesia as a global benchmark in geothermal energy development.
Moreover, PT Pertamina Geothermal Energy, represented at the recent forum, signaled its readiness to expand geothermal utilization beyond traditional electricity generation. CEO Julfi Hadi revealed plans to explore applications in green hydrogen and green ammonia, noting that their analysis indicates a high commercial potential for these derivatives, expected to see significant growth by 2030. Pertamina is actively preparing a comprehensive ecosystem for green hydrogen, encompassing all stages from geothermal production to end-user delivery.
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