Indonesia's Commitment to Geothermal Energy: A Path to Global Leadership in Renewable Resources

During the recent Indonesia International Geothermal Convention & Exhibition 2025, Energy and Mineral Resources Minister Bahlil Lahadalia underscored the government's commitment to transforming Indonesia into a global geothermal powerhouse. With the country holding the world’s second-largest geothermal capacity at 2,744 megawatts—behind only the United States—Lahadalia emphasized the necessity of regulatory reforms to attract investors. He noted that cumbersome regulations deter investment, prompting the ministry to streamline processes to accelerate geothermal development.

A key initiative is the launch of the Genesis digital platform, set to facilitate geothermal working area auctions starting in 2025. This platform aims to reduce bureaucratic hurdles, allowing permits that once took up to 1.5 years to be processed in just seven days. Such efficiency is crucial, as the government targets an additional 5.2 gigawatts of geothermal capacity in the next decade, with aspirations to lead globally in geothermal utilization.

Indonesia's geothermal potential is substantial, estimated at 23,742 megawatts, with only about 10% currently harnessed. Lahadalia expressed confidence that the untapped reserves present significant opportunities for growth, and he welcomed international collaboration to enhance technology and best practices in the sector. Furthermore, the government's electricity supply business plan sets ambitious goals for renewable energy development, reinforcing Indonesia's position in the clean energy transition.

Highlighting the reliability of geothermal energy, the chairman of the Indonesian Geothermal Association, Julfi Hadi, described it as the only renewable source capable of consistent operation with capacity factors exceeding 90%. This reliability positions geothermal energy as a cornerstone of a sustainable energy system.

In addition to meeting energy needs, geothermal projects are proving beneficial to local economies, generating significant revenue through production bonuses and creating thousands of jobs. As the government prepares to launch its first online geothermal auction, local entrepreneurs and small businesses are expected to play a crucial role in supporting this growing sector.

With its vast geothermal resources and proactive policy measures, Indonesia is not just aiming for energy independence but is also positioning itself as a learning hub for other nations seeking to leverage geothermal energy. As the country forges ahead, it remains clear that Indonesia is on a trajectory to become a leader in the renewable energy landscape.