Indonesia Calls Global Investors to Develop Geothermal Energy

KBRN, Abu Dhabi: Indonesia is moving to revise its Geothermal Law in response to declining investment over the past two years and is accelerating discussions on several strategic regulations, including the Renewable Energy Bill, amendments to the Electricity Law, and a Climate Change Management Bill.

Speaking at the Abu Dhabi Sustainability Week on Wednesday, January 14, 2025, People’s Consultative Assembly (MPR) Deputy Speaker Eddy Soeparno urged global energy players to invest in Indonesia’s geothermal sector, which he described as one of the largest untapped resources in the world.

Eddy highlighted that Indonesia holds geothermal potential of around 24 gigawatts, yet only 10 percent has been utilized. “Indonesia is blessed with extraordinary geothermal resources. I hope to see some of you come to Indonesia to explore the abundant opportunities we have,” he told the forum, which was attended by leading renewable energy companies, as reported by Antara.

He noted that Indonesia occupies a unique position, with vast reserves of renewable energy, solar, hydro, wind, and geothermal, while also possessing significant fossil fuel deposits.

Despite this wealth, the country remains dependent on imports to meet daily energy needs, including about one million barrels of oil per day, seven million tons of LPG annually, and diesel fuel.

“From the perspective of energy sustainability, Indonesia still has much homework to do to achieve energy security,” Eddy said.

Under the national electricity development plan, the government aims to add 69.5 gigawatts of new power capacity within the next eight to nine years. Of that, 5.2 gigawatts will come from geothermal, 42 gigawatts from other renewable sources, and 10 gigawatts from battery storage facilities.

Achieving this ambitious target will require an estimated USD 190 billion in investment.

Eddy stressed that the government and the House of Representatives are expediting regulatory revisions to create a more attractive investment climate for clean energy development.

One key issue under consideration is power wheeling, which would allow electricity producers wider access to transmit energy through the national grid.

“On the regulatory side, we are here to support, facilitate, and accelerate the development and investment in Indonesia’s geothermal sector,” Eddy affirmed. ***