The Ministry of Energy and Mineral Resources (ESDM) has announced a growing interest from global oil drilling companies in investing in the country’s renewable energy sector, particularly geothermal power, with international fossil fuel firms such as Inpex Corporation and Chevron Corporation reportedly eager to participate in the upcoming auction of 10 geothermal working areas (WKP).

“They need ‘green’ initiatives to qualify for green investments. That’s why foreign fossil energy players are now eyeing geothermal development in Indonesia,” Eniya Listiani Dewi, Director General of New, Renewable Energy, and Energy Conservation at ESDM ministry, said during her visit to the Ijen Geothermal Power Plant (PLTP) on Thursday, June 26, 2025.

According to the upcoming Electricity Supply Business Plan (RUPTL) 2025–2034, Indonesia is targeting an installed geothermal power capacity of 5.15 Gigawatts (GW) by 2030, an increase from 3.35 GW outlined in the previous 2021–2030 plan. Eniya believes oil companies are well-positioned to pivot to geothermal projects, as the core processes − particularly drilling techniques − are largely similar.

Chevron, for instance, has shown keen interest in entering several geothermal zones, particularly those scheduled for auction in the third quarter of 2025. Notably, Chevron has already partnered with PT Pertamina Geothermal Energy on the Wai Ratai Geothermal Power Plant, which will have a 55 MW capacity.

Eniya also confirmed that a market consultation has been conducted for the 10 WKP sites, and the online auction process will proceed following a revision of the current geothermal auction regulation. The final approval from ESDM Minister Bahlil Lahadalia is awaited before the auctions can officially launch between July and September 2025.

“Some WKPs are ready for auction, but we’re still awaiting the Minister’s decision,” she said.

In response to heightened investment interest, Eniya revealed that the government is also preparing to deregulate geothermal development, including amending Government Regulation No. 7/2017, which currently poses several barriers for geothermal investors. The regulation change is expected to improve the Internal Rate of Return (IRR) for developers from below 10 percent to an estimated 10–11 percent.

“Some of the burdens on geothermal projects are embedded in the current regulation. These need to be removed to enhance project viability,” she concluded.

This move signals Indonesia’s serious commitment to accelerating renewable energy development and attracting global capital for its geothermal-rich landscape, as part of a broader push toward energy transition and climate resilience.