Pertamina Geothermal Energy and PLN Indonesia Power signed a Letter of Intent on August 25, 2026, to formalize the purchase of electricity from two geothermal bottoming units in Sumatra and Sulawesi. The agreement covers a combined 45 MW of capacity and follows tariff terms the two companies had already finalized earlier this year.
Key Facts At A Glance
- PGE and PLN Indonesia Power signed the LOI during the 12th Indonesia International Geothermal Convention & Exhibition (IIGCE) in Jakarta
- Lahendong Bottoming Unit (North Sulawesi): 15 MW
- Ulubelu Bottoming Unit (Lampung): 30 MW
- Combined capacity: 45 MW
- The LOI formalizes tariff agreements already finalized earlier in 2026
- IIGCE 2026 ran August 19-21 in Jakarta
- PGE separately received a mandate to conduct a preliminary geothermal survey in Cubadak Panti, West Sumatra
- Signing followed PLN’s earlier LOI signings with the Ministry of Energy and Mineral Resources for other geothermal working areas at the same convention
PT Pertamina Geothermal Energy (PGE) and PT PLN Indonesia Power (PLN IP) signed a Letter of Intent for the purchase of electricity from two geothermal bottoming units, the 15-MW Lahendong unit in North Sulawesi and the 30-MW Ulubelu unit in Lampung, bringing the combined committed capacity to 45 MW. The agreement was announced during the 12th Indonesia International Geothermal Convention & Exhibition, held in Jakarta from August 19 to 21. The LOI formalizes tariff terms for both projects that PGE and PLN had already agreed on earlier in the year, converting a prior pricing understanding into a documented offtake commitment.
PGE President Director Ahmad Yani said the Ulubelu and Lahendong plants have historically played a role in ensuring stable and reliable electricity supply for communities in Lampung and North Sulawesi, and described the expansion of both bottoming units as a move to optimize existing operational geothermal assets. The disclosure was made to the Indonesia Stock Exchange on August 23.
Alongside the offtake agreement, PGE received a separate mandate to conduct a preliminary survey of geothermal potential in the Cubadak Panti area of West Sumatra, expanding its exploration pipeline beyond the two bottoming-unit projects. The three agenda items, the Lahendong LOI, the Ulubelu LOI, and the Cubadak Panti survey mandate, were all finalized during IIGCE 2026.
The convention also saw Indonesia’s Ministry of Energy and Mineral Resources award separate geothermal working area licenses to PLN and to private developer PT Telaga Rano Geothermal, part of a broader push by the ministry to accelerate project execution across the sector. Minister Bahlil Lahadalia used the event to press companies holding existing concessions to stop delaying construction, arguing that retained but undeveloped project rights slow the wider industry.
Publicly available reporting on the Lahendong and Ulubelu LOI does not include a target commercial operation date for the added bottoming-unit capacity or the value of the offtake agreement, and this report does not infer beyond what PGE and PLN IP have disclosed.