PT Pertamina Geothermal Energy (PGE), a subsidiary of State energy company PT Pertamina, has announced a new strategy to accelerate the development of geothermal energy as part of Indonesia’s national energy transition.
The core focus of this strategy is collaboration between various stakeholders, including the government, industry, and investors.
Coordinating Minister for Maritime Affairs and Investment, Luhut B. Pandjaitan, told the plenary session of the Indonesia International Sustainability Forum (ISF) on Thursday, September 5, 2024, of the importance of collective efforts to speed up the energy transition, stating that the future of clean energy in Indonesia depends on collaborative commitments from all involved parties.
Nicke Widyawati, CEO of PT Pertamina, highlighted geothermal energy as the ideal solution for Indonesia because it can serve as a stable baseload energy source.
PGE’s CEO, Julfi Hadi, added that a new paradigm in geothermal energy development is necessary to enhance the investment appeal of renewable energy, especially with the goal of reaching 7 GW of geothermal capacity by 2033.
He cited three key strategies to reach the target, namely new business model, which promotes phased development in geothermal work areas to optimize costs; cost reduction through the use of new technology and collaboration among developers; and business diversification, which includes expansion into non-electricity sectors such as green hydrogen and green ammonia, and promotion of local manufacturing.
Julfi also stressed the need for incentives like concessional loans and international carbon credits to support these developments.
With an installed capacity of 672 MW, PGE aims to increase its capacity to 1 GW in the coming years.
