Indonesia’s Ministry of Energy and Mineral Resources awarded new geothermal working area permits to state utility PT PLN (Persero) and private developer PT Telaga Rano Geothermal at the Indonesia International Geothermal Convention & Exhibition in Jakarta. The awards, made as the ministry outlined plans to offer 12 additional geothermal areas in 2026, come as officials push to close the gap between Indonesia’s geothermal potential and its installed capacity.
Key Facts At A Glance
- The 12th Indonesia International Geothermal Convention & Exhibition (IIGCE) opened in Jakarta on August 19, 2026
- PT PLN (Persero) was awarded a geothermal working area (WKP) permit for the Mount Ungaran area in Central Java
- PT Telaga Rano Geothermal received a WKP permit for the Telaga Ranu area
- The ministry is preparing to offer five additional WKPs with combined resources of roughly 304 MW and planned capacity of about 145 MW
- Seven Preliminary Survey and Exploration Assignment Areas (WPSPE) are also planned for offer, requiring an estimated $140 million in investment
- The government is targeting Rp2.6 trillion in geothermal non-tax revenue and $1.1 billion in geothermal investment for 2026
- Related deals discussed at IIGCE included a letter of intent between PLN and Sarulla Operations Ltd for restoration of the 330-MW Sarulla plant
Indonesia’s Ministry of Energy and Mineral Resources handed geothermal working area permits to two developers at the opening of the 12th Indonesia International Geothermal Convention & Exhibition in Jakarta, part of a broader push to accelerate the country’s geothermal buildout. PT PLN (Persero) received the permit for the Mount Ungaran working area in Central Java, while PT Telaga Rano Geothermal was awarded the Telaga Ranu working area.
Energy and Mineral Resources Minister Bahlil Lahadalia opened the convention on August 19 with a mixed assessment of the sector, noting that Indonesia holds some of the world’s largest geothermal reserves yet its installed capacity remains well below that potential. The ministry said it is preparing revisions to government regulations governing geothermal valuation and to a presidential decree on renewable energy development, changes intended to improve investment returns in the sector.
Pipeline For Additional Areas
Director General of New, Renewable Energy and Energy Conservation Eniya Listiani Dewi said the ministry plans to offer 12 geothermal areas in 2026, a sharp increase from prior years. “Now, this year there are five plus seven, and that’s already more” than originally planned, she said, speaking at the convention on August 20.
The five WKPs being prepared for auction are Danau Ranau, Hamiding, Songgoriti, Oka Ile Ange and Mount Sirung, with combined resources of approximately 304 MW and planned generation capacity of around 145 MW. Separately, seven WPSPE areas, including Maranda Kawende, W.L. Seporaki, Sirejo, Talamau, Simisuh, Massepe Sulili and Banda Baru, are expected to require roughly $140 million in combined investment. Dewi said the auction and winner-determination process for the WPSPE areas is expected to take about three months once documentation requirements are finalized.
Revenue And Investment Targets
Dewi said the ministry is targeting Rp2.6 trillion in non-tax revenue from the geothermal sector this year, noting geothermal is currently the only renewable energy segment that contributes to non-tax state revenue. She said the ministry is also targeting $1.1 billion in geothermal investment for 2026, with that figure potentially rising to $2.2 billion if new auctions proceed as planned.
The convention also featured a series of project-level agreements involving PLN and other developers, including a letter of intent between PLN and Sarulla Operations Ltd covering restoration of the 330-MW Sarulla geothermal plant, and a second amendment to the power purchase agreement between PLN and PT Supreme Energy Rajabasa for the Rajabasa plant.