Indonesia’s state investment management authority BPI Danantara is preparing to sign a Head of Agreement (HoA) and Memorandum of Understanding (MoU) State energy company PT Pertamina Geothermal Energy (PGE) to accelerate the development of key national projects, with a focus on expanding geothermal energy capacity up to 3 gigawatts (GW).

Danantara CEO Rosan Roeslani shared the update following a strategic meeting with PGE’s board of directors at Danantara’s headquarters. The agreement is expected to help fast-track investments and push forward the inclusion of geothermal projects into Indonesia’s national electricity roadmap.

“This is a crucial step toward accelerating the transition to clean and sustainable energy,” Rosan said in his social media account on Tuesday, June 24, 2025.

He emphasized that the upcoming Electricity Supply Business Plan (RUPTL) 2025–2034 is a major area of focus, particularly regarding the integration of geothermal initiatives. The collaboration between Danantara and PGE is seen as a catalyst for energy downstreaming and a driver of national green economic growth.

Currently, PGE manages an installed geothermal capacity of 1,877.5 megawatts (MW) − 672.5 MW operated directly by the company and 1,205 MW under Joint Operation Contracts (JOC). In 2024, the company recorded a 1.96 percent increase in electricity production, reaching 4,827.22 gigawatt hours (GWh), thanks to strong performance in key regions such as Kamojang (+5.36 percent), Lahendong (+0.40 percent), and Lumut Balai (+2.72 percent).

The energy generated by PGE is sufficient to supply electricity to over 2 million households and contributes to reducing carbon emissions by up to 9.7 million tons of CO2 annually.

Looking ahead, PGE aims to raise its independently operated capacity to 1 GW within two years, and further to 1.7 GW by 2033. To reach these targets, the company is focusing on ramping up production, exploration, and the development of new geothermal working areas, including the Lumut Balai Unit 2 project, which is expected to begin operations mid-year.

“This initiative aligns with PGE’s commitment to support the national energy transition, enhance energy resilience, and contribute to Indonesia’s Net Zero Emission goal by 2060,” PGE management noted in a statement on Monday, June 23, 2025.