Geothermal Stakeholder in Indonesia

Indonesia’s geothermal industry involves a broad range of stakeholders, including developers, the utility/off-taker, government institutions supporting the industry, financial institutions, and other ecosystem participants. The Government remains a prime stakeholder and consists primarily of the Ministry of Energy and Mineral Resources (MEMR) and its relevant directorates responsible for geothermal regulation, licensing, and WKP (Geothermal Working Area) tendering, alongside other ministries involved in fiscal policy, environment, and investment. Provincial, regency, and municipal governments are also key stakeholders in permitting, spatial planning, environmental approvals, and community engagement. Indonesia currently has 38 provinces and hundreds of autonomous regional governments, all of which play important roles in facilitating geothermal development at the local level. ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Developers are entities that have invested and continue to invest in geothermal projects across Indonesia, holding and operating WKPs through exploration, drilling, and power plant development. These include state-owned enterprises and their subsidiaries such as Pertamina Geothermal Energy, Geo Dipa Energi, and entities within the PT PLN (Persero) group, particularly PLN Indonesia Power and its renewable and geothermal subsidiaries. In addition, private national and international developers such as Star Energy Geothermal and Medco Power Indonesia actively operate and expand geothermal assets. As of recent years, Indonesia’s installed geothermal capacity has reached approximately 2.6–2.8 GW, making it one of the largest geothermal markets globally, with additional capacity targeted under the latest national electricity supply plan (RUPTL). ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- The utility/off-taker remains PT PLN (Persero), which continues to serve as the single buyer of geothermal electricity under long-term Power Purchase Agreements, integrating geothermal generation into the national grid. Financial institutions, including domestic banks, international lenders, multilateral development banks, climate finance institutions, and equity investors, play a critical role in addressing the capital-intensive and high-risk nature of geothermal exploration and development through debt financing, guarantees, and blended finance mechanisms. Other relevant participants in the geothermal ecosystem include drilling and EPC contractors, supporting service companies, academia and research institutions, industry organizations such as Asosiasi Panas Bumi Indonesia, and media outlets, all of which contribute to policy dialogue, technical advancement, and sustainable growth of Indonesia’s geothermal sector.