Geothermal in Indonesia: Unlocking Clean Energy & Export Potential

As the global energy transition rapidly progresses, geothermal energy in Indonesia stands out as a vital part of the solution. Unlike solar and wind, geothermal power delivers round-the-clock, stable electricity, making it ideal for building a low-carbon, resilient energy future. Indonesia’s unique position on the Pacific Ring of Fire further enhances its potential in this field. 

Indonesia, strategically located on the Pacific Ring of Fire, boasts massive geothermal resources. Developing this potential not only strengthens domestic energy supply but also positions Indonesia as a key player in the global energy market, with opportunities to export electricity to regional partners such as Singapore. 

Why Geothermal Energy Matters 

Geothermal energy is the harnessing of heat from beneath the Earth’s surface to generate electricity. It provides a clean, reliable energy source with a potential capacity of over 23.7 gigawatts (GW). 

As the global energy transition rapidly progresses, geothermal energy is gaining importance. Here are the reasons why geothermal energy is uniquely suited to support this shift: 

• Provides 24/7 baseload power 
• Emits minimal greenhouse gases 
• Offers long-term cost efficiency 

With abundant geothermal reserves, Indonesia has a strategic advantage in meeting both domestic and regional clean energy needs. Key benefits for Indonesia include: 

• Reduces dependence on coal and gas 
• Enhances energy security 
• Supports climate targets through low-emission power

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Indonesia’s Untapped Geothermal Potential 

Indonesia possesses some of the largest geothermal energy reserves in the world, with a total potential of up to 24 gigawatts (GW). These resources are geographically widespread and classified as baseload power, capable of delivering consistent electricity regardless of weather or season, making them ideal for national energy stability and clean transition efforts. 

Untapped Potential 

Indonesia has vast geothermal energy resources that remain largely underdeveloped: 

• Estimated geothermal capacity: 23.7 GW. 
• Current installed capacity: 2,276 MW. 
• Over 21 GW is still untapped. 

Strategic National Resource 

These geothermal resources are located across the country and serve as reliable baseload energy sources: 

• Resources are located in over 360 sites nationwide. 
• Functions as a reliable baseload energy. 

Growth & Investment 

There are ambitious plans and investment opportunities focused on expanding geothermal capacity: 

• The target is to add 1,630 MW of new capacity through new projects. 
• Focus on manufacturing, off-grid systems, and infrastructure. 
• Funding expected from public-private partnerships and national investment agencies 

National Energy Target 

The government’s energy roadmap outlines specific goals and required investments: 

• 7.24 GW geothermal target by 2025 
• Requires around USD 15 billion in investment 
• Needs tech upgrades, skilled labor, and regulatory support

Exporting Geothermal Power to Singapore and Beyond 

Indonesia plans to export renewable energy to Singapore, with geothermal playing a supporting role. This plan supports the development of renewable energy, including geothermal in Indonesia, and opens the door to international investment and energy trade. 

Clean Energy Trade Agreement 

This agreement outlines a long-term commitment to regional energy trade: 

• MoU signed with Singapore for 3.4 GW power export by 2035 
• The export mix includes solar, battery storage, and potentially geothermal. 

Investment Impact 

The agreement is expected to draw significant investment into Indonesia’s clean energy infrastructure: 

• Targeting IDR 855.7 trillion (USD 52.7 billion) in investment 
• Projects include 18.7 GWp solar and 35.7 GWh BESS. 
• Geothermal can balance solar output for a stable supply. 

Broader Benefits 

Beyond investment, this initiative provides broader economic and regional gains: 

• Boosts Indonesia’s clean energy industry and manufacturing 
• Creates jobs and export revenue 
• Strengthens regional energy cooperation 

The Future of Geothermal in Indonesia 

Indonesia is ready to scale up its geothermal sector to meet clean energy needs and expand regional exports. Here’s what the future looks like: 

Growth Outlook 

The country has laid out specific targets for expanding geothermal production: 

• Over 23,700 MW potential across 360+ locations 
• Plan to add 5.2 GW in the next decade. 

Faster Project Timelines 

Project development is expected to accelerate due to government reforms: 

• Plants under construction in West Java, West Sumatra (30–80 MW each) 

• The government is improving permit processes and launching digital licensing tools. 

Clean Energy Leadership 

Geothermal offers environmental and strategic advantages for domestic and regional use: 

• Geothermal emits 75 g CO₂/kWh, vs. 995 g/kWh from coal 
• Ideal for domestic energy and export to countries like Singapore 
• Building a skilled workforce and local supply chains to support growth

Build Your Geothermal Venture with InCorp 

Geothermal energy in Indonesia holds the key to a cleaner, more secure energy future. With abundant resources, clear government targets, and rising international demand, Indonesia can become a leader in both renewable energy production and clean energy exports. 

However, making this vision a reality requires more than energy resources. It demands the proper support across regulatory, operational, and sustainability fronts. 

• ESG Advisory: Align your geothermal projects with international sustainability standards to secure green funding and stakeholder trust. 
• Business Licensing: Navigate the complex licensing landscape to ensure your geothermal operations comply with national energy laws. 
• Company Registration: Establish your geothermal venture quickly and legally with end-to-end support for foreign and local investors. 

With the right strategy and partners, geothermal energy can help Indonesia power a sustainable future for itself and Southeast Asia. Ready to take the next step? Fill out the form below to get started.

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