Indonesia’s state-owned energy company PT Pertamina and state electricity provider PT PLN have reportedly entered an agreement to develop 19 geothermal energy projects, collectively generating 530MW.
This effort supports Indonesia’s goals of energy independence and a shift toward renewable energy sources, according to Indonesia Business Post.
The collaboration involves creating effective partnership models, leveraging each company’s geothermal working areas (WKP), coordinating and expediting project timelines.
It will also focus on performing technical and economic viability assessments, as well as forming a joint task force and committee to oversee implementation.
Alongside the primary agreement, PT Pertamina Geothermal Energy (PGE) and PT PLN Indonesia Power (PLNIP) signed a heads of agreement to advance geothermal energy for electricity generation.
A consortium agreement was established between PGE and PLNIP for the Ulubelu Bottoming and Lahendong Bottoming Units to secure Independent Power Producer (IPP) projects, aligning with PGE’s plan to achieve a 1GW capacity in two to three years.
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By GlobalDataThe Ulubelu BU (30MW) and Lahendong BU (15MW) are prioritised in this strategy.
By combining resources, expertise, and assets, the partnership aims to facilitate the development of geothermal power facilities and enhance Indonesia’s renewable energy framework from exploration to production.
The initiative is anticipated to contribute to economic development at both local and national levels.
Danantara Indonesia CEO Rosan Roeslani stresses geothermal energy’s vital role in boosting Indonesia’s energy security and transitioning to a low-carbon economy.
Roeslani was quoted by the news agency as saying: “Through this cross-SOEs collaboration, Danantara Indonesia supports the creation of inclusive and sustainable economic growth, while strengthening Indonesia’s energy independence.”
Pertamina CEO Simon Aloysius Mantiri stated that the company, via its subsidiary PT Pertamina Geothermal Energy (PGEO), is committed to expanding geothermal resource use as a cornerstone of Indonesia’s clean energy strategy.
Mantiri said: “Through this collaboration, we are exploring a cooperative model that allows the measured and progressive optimisation of geothermal working areas.
“Together with PLN and Danantara Indonesia, we are ready to accelerate the realisation of strategic projects that directly contribute to the national energy transition targets and the improvement of the renewable energy mix.”
