State energy company PT Pertamina and State electricity company PT PLN have agreed to develop 19 geothermal energy projects with a total capacity of 530 Megawatts (MW) in support of self-sufficiency and accelerating the nation’s transition to clean energy.

Rosan P. Roeslani, CEO of Danantara Indonesia, emphasized that geothermal energy development is a key part of Indonesia's agenda to strengthen energy security and drive the transition to a low-carbon economy.

“Through this cross-SOEs collaboration, Danantara Indonesia supports the creation of inclusive and sustainable economic growth, while strengthening Indonesia's energy independence,” he said as quoted in a statement on Tuesday, August 5, 2025.

The partnership focuses on formulating optimal cooperation schemes, utilizing the geothermal working areas (WKP) of each party, aligning and accelerating project implementation, conducting technical and commercial feasibility studies, and establishing a Joint Work Team and Joint Committee as a coordination forum for execution.

Simon Aloysius Mantiri, CEO of Pertamina, highlighted that the company, through its subsidiary PT Pertamina Geothermal Energy (PGEO), is determined to expand the utilization of geothermal resources as a backbone for Indonesia’s clean energy.

“Through this collaboration, we are exploring a cooperative model that allows the measured and progressive optimization of geothermal working areas. Together with PLN and Danantara Indonesia, we are ready to accelerate the realization of strategic projects that directly contribute to the national energy transition targets and the improvement of the renewable energy mix,” he said.

In addition to the MoU between Pertamina and PLN, a Head of Agreement was also signed between PT Pertamina Geothermal Energy (PGE) and PT PLN Indonesia Power (PLNIP) regarding geothermal energy development for power plants. A Consortium Agreement was made between PGE and PLNIP for the Ulubelu Bottoming and Lahendong Bottoming Units to procure Independent Power Producer (IPP) projects as part of PGE’s quick-win strategy to reach a 1 GW capacity in 2 to 3 years. This initiative prioritizes Ulubelu BU with 30 MW and Lahendong BU with 15 MW.

“Indonesia has the second-largest geothermal potential in the world, reaching 24 Gigawatts (GW), while current installed capacity is only around 2.5 GW. This presents a strong foundation for aggressive growth moving forward. With synergy, we can make Indonesia a leader in geothermal energy utilization and a sustainable economy,” Simon said.

By optimizing assets, resources, and expertise, the partnership is expected to drive the realization of geothermal power plant projects and strengthen the renewable energy ecosystem from upstream to downstream. The program is expected to boost economic growth both regionally and nationally.

The MoU was signed by Pertamina CEO Simon Aloysius Mantiri and PLN CEO Darmawan Prasodjo, with Danantara Indonesia CEO Rosan P. Roeslani witnessing the event at the Danantara Building in Jakarta on Tuesday, August 5, 2025. The event was facilitated by the Investment Management Agency BPI Danantara through PT Danantara Asset Management.