Jakarta — Indonesia must adopt a new paradigm and business model to unlock the full potential of its geothermal resources, the Indonesian Geothermal Association (API/INAGA) said in a statement on Tuesday, July 1.
INAGA Chair Julfi Hadi at the 14th ITB International Geothermal Workshop (IIGW) 2025 held in Bandung on Monday, urged for a “progressive, integrated, and value-driven” approach to geothermal development that focuses on updated technologies, cost efficiency, and diversified revenue streams. Despite holding the world’s largest geothermal reserves, Indonesia has only utilised around 12% of its estimated 24 gigawatts (GW) capacity, he said.
Julfi said, “We need breakthroughs. We need new technology, we need to reduce costs, increase production, increase revenue streams, and build an integrated ecosystem from upstream to downstream. If we can develop its potential optimally, geothermal will become a big industry in Indonesia”.
INAGA aims to surpass the U.S. in installed geothermal capacity by reaching 3.8 GW by 2029, exceeding the government’s 3.6 GW target, and hitting 7.8 GW by 2034.
Key challenges remain, including high exploration risk, significant capital requirements, and gaps in transmission infrastructure. Julfi proposed solutions such as staged development to mitigate risk, adoption of modular plants and cogeneration technologies, and the establishment of a long-distance “supergrid” to distribute geothermal power nationwide.
He also highlighted the need for fiscal and non-fiscal incentives, noting that API is currently working with the Ministry of Energy and Mineral Resources to formulate more effective tariff and incentive schemes.
Beyond the technical and economic aspects, Julfi stressed the importance of engaging local communities and showcasing geothermal energy’s potential to generate jobs and local income. (nsh)
Banner photo: (left to right) Geothermal Inspector of the Directorate of Geothermal of the Ministry of Energy and Mineral Resources Irwan Wahyu Kurniawan, Chairman of the Indonesian Geothermal Association (API) Julfi Hadi, Chairperson of the ITB International Geothermal Workshop (IIGW) Suryantini, and Dean of the Faculty of Mining and Petroleum Engineering, Institut Teknologi Bandung (FTTM ITB) Prof. Syahrizal pose for a group photo during the 14th ITB International Geothermal Workshop (IIGW) 2025 in Bandung on Monday (30/06/2025). (Source: API/INAGA)
