Indonesia is poised to become the world’s largest producer of geothermal electricity, building on its vast renewable energy potential and ongoing regulatory reforms, according to Energy and Mineral Resources Minister Bahlil Lahadalia.
Speaking at the opening of the Indonesia International Geothermal Convention & Exhibition (IIGCE) 2025 in Jakarta on Wednesday, Bahlil said Indonesia currently ranks second globally in geothermal power generation, with an installed capacity of 2,744 megawatts (MW), behind the United States with 3,937 MW.
“We know that geothermal is one of the renewable energy sources, and Indonesia has the largest reserves in the world. But we have only managed to utilize around 10 percent so far. That means 90 percent of this potential is still untapped,” said Bahlil, as quoted from the official website of the Ministry of Energy and Mineral Resources on September 17.
With a total geothermal potential estimated at 23,742 MW, the minister called for an acceleration of geothermal development through the auction of Geothermal Working Areas (WKP), in line with President Prabowo Subianto’s directive to reform and streamline regulations to provide certainty for investors.
To support this initiative, the ministry has simplified licensing procedures that were previously seen as obstacles to investment. In 2024, it launched a digital platform named Genesis for geothermal resource management, which is now used for WKP auctions.
“One of the biggest concerns for investors is overly complicated regulations. The more complicated the rules, the more investors are discouraged. Over the past year, our program has focused on eliminating regulatory hurdles that delay geothermal development. We’ve cut through all of it,” said Bahlil.
In addition, the government’s 2025–2034 Electricity Supply Business Plan (RUPTL) includes the development of 48,000 circuit kilometers of transmission lines to support the expansion of new and renewable energy projects. Bahlil acknowledged that current transmission infrastructure is still inadequate to connect renewable energy sources with the national grid.
“This year, the Government of the Republic of Indonesia is committed to building 48,000 circuit kilometers of transmission lines as outlined in the 2025–2035 RUPTL. This is part of our obligation to accelerate the development of renewable energy,” he said.
During the IIGCE 2025 event, Bahlil also witnessed the signing of seven memoranda of understanding involving state-owned enterprises, private national and international companies. The agreements cover education and capacity building, technology investment, and financing commitments totaling 265 MW in geothermal capacity with a combined investment of US$1.5 billion (Rp25 trillion).