Antara News·Indonesia·Wednesday, August 19, 2026 at 02:12 PM

Bahlil urges developers to immediately realize geothermal projects

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Putu Indah Savitri, Yashinta Difa

Jakarta (ANTARA) - Energy and Mineral Resources (ESDM) Minister Bahlil Lahadalia has urged geothermal developers to immediately begin developing their concessions, warning that delays could hamper Indonesia’s efforts to accelerate the energy transition.

Speaking at the 12th Indonesia International Geothermal Convention & Exhibition (IIGCE) 2026 in Jakarta on Wednesday, Bahlil called on companies holding geothermal concessions to move quickly as the government seeks to strengthen national energy sovereignty.

“For those entrepreneurs who have already obtained concessions, we must also act quickly. Do not hold back your concessions. Holding them back will only slow things down,” Bahlil stated.

According to ESDM Ministry data, Indonesia has an estimated 23,202.77 megawatts (MW) of geothermal potential, one of the largest in the world. However, 88.4 percent of the potential remains untapped, while installed geothermal capacity currently stands at 2,776.39 MW.

To accelerate geothermal development, the ministry is preparing regulatory reforms, financial incentives, and other policy measures to prevent unused concessions from expiring.

Bahlil acknowledged that although the economic value of geothermal energy is estimated at around 9.5 US cents per kilowatt-hour (kWh), business actors still consider the figure challenging.

In response, the government is revising Government Regulation No. 7 of 2017 on the indirect utilization of geothermal energy to improve investment returns, alongside revisions to Presidential Regulation No. 112 of 2022 to accelerate renewable energy development.

“There is no other way to accelerate geothermal development, whether for electricity generation or other uses. Collaboration between businesses and regulators is essential,” Bahlil said.

Demonstrating progress at the convention, the ministry officially granted new geothermal permits to state-owned electricity company PT PLN (Persero) for the Mount Ungaran Working Area (WKP) and to PT Telaga Rano Geothermal for the Telaga Ranu WKP.

Additionally, the government plans to tender five new geothermal working areas (WKPs) and seven exploration assignment areas in 2026.

Beyond electricity generation, the ministry continues to promote the direct utilization of geothermal energy, which currently supports local industries such as coffee drying in Kamojang, West Java; palm sugar production in Lahendong, North Sulawesi; and the extraction of strategic minerals from geothermal brine in Dieng, Central Java.

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