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In a significant move towards enhancing Indonesia's renewable energy landscape, President Prabowo Subianto is poised to inaugurate the Lumut Balai Unit 2 geothermal power plant in South Sumatra by the end of September 2025. Energy Minister Bahlil Lahadalia announced this development during the 11th Indonesia International Geothermal Convention and Exhibition (IIGCE) held in Jakarta.

The Lumut Balai Unit 2, which boasts a capacity of 55 megawatts, has already begun operations, having received its operational viability certificate on June 29, 2025. Bahlil emphasized that the plant is fully prepared for a symbolic inauguration, expressing optimism that the President himself will attend the ceremony, which could happen as soon as the end of this month.

Operated by PT Pertamina Geothermal Energy, the plant represents a vital component of a broader strategy to tap into Indonesia's geothermal potential. The company has secured a power purchase agreement with PT PLN Persero at a rate of USD 7.53 cents per kilowatt-hour, a deal that has been in place since 2011. Minister Bahlil highlighted that the project is part of Pertamina's commitment to boost its geothermal capacity by an additional 340 megawatts this year.

Currently, Pertamina Geothermal Energy operates a total capacity of 1,887 megawatts across 13 geothermal working areas, which includes both self-operated and contracted power generation. The successful completion of Lumut Balai Unit 2 is a testament to the company's long-term commitment to providing reliable and sustainable geothermal energy.

Julfi Hadi, CEO of Pertamina Geothermal Energy, expressed gratitude for the successful launch of Lumut Balai Unit 2 and reaffirmed the company's dedication to supporting Indonesia's energy transition goals. This project not only strengthens the national energy mix but also moves the country closer to achieving its target of 1 gigawatt of independently managed capacity within the next few years.

Looking ahead, Pertamina is optimistic about further developments in geothermal energy, aiming for a significant increase in geothermal capacity to 5.2 gigawatts by 2034. In addition to Lumut Balai Unit 2, the company is advancing other strategic projects, including the Hululais units and the Gunung Tiga exploration site in Lampung, underscoring its commitment to renewable energy expansion in Indonesia.