Bandung, IndonesiaSentinel.com — Indonesia’s Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, revealed that the country holds the potential to generate up to 93 gigawatts (GW) of electricity, with geothermal power plants accounting for 24 GW. This makes Indonesia the second-largest geothermal resource holder globally.
According to Bahlil, Indonesia boasts 40% of the world’s geothermal potential, yet the nation currently only has an installed capacity of 2.6 GW.
Speaking at the 10th Indonesia International Geothermal Convention and Exhibition held at the Jakarta Convention Center on Wednesday, September 18, 2024, Bahlil highlighted the rapid growth in the sector. “Over the past decade, the geothermal capacity has doubled,” he noted.
Bahlil emphasized that Indonesia is set to harness its geothermal resources to achieve its renewable energy mix target of 23% by 2025 and push towards its Net Zero Emission (NZE) goal by 2060. “Geothermal energy can serve as a key instrument in increasing the share of renewable energy in the national energy mix,” he added.
Currently, geothermal energy represents 18.5% of the total renewable energy capacity in Indonesia and accounts for 23% of the country’s overall electricity potential, which stands at 93 GW.
Bahlil further explained that geothermal power plants (PLTP) have not only contributed to reducing the nation’s carbon footprint but also provided significant economic benefits. “The development of geothermal plants has created approximately 900,000 jobs and contributed around IDR 16 trillion to the state. Additionally, PLTP has helped reduce 17.4 million tons of CO2 emissions annually,” he said.
Investment in the renewable energy sector, particularly in geothermal energy, is expected to grow significantly, with projections showing an eightfold increase over the past decade. In 2024 alone, investments in geothermal power are expected to reach $8.7 billion, equivalent to IDR 133.52 trillion, based on the exchange rate of IDR 15,348 per U.S. dollar.
Indonesia’s strategic push towards renewable energy, with geothermal power at the forefront, underscores the country’s commitment to reducing emissions while ensuring sustainable economic growth.
(Raidi/Agung)
