Indonesia holds one of the world’s largest untapped reserves of geothermal heat, yet it has commercialised barely a fraction of that resource. The country’s installed geothermal generating capacity stands at approximately 2,744 MW against an estimated potential of around 23,000 MW , a gap that dominated the opening of the world’s largest dedicated geothermal industry gathering last week.
Minister calls out concession holders over delays
Indonesia’s Ministry of Energy and Mineral Resources opened the 12th edition of the Indonesia International Geothermal Convention and Exhibition (IIGCE) in Jakarta on August 19, 2026. The event set a pointed tone from the outset.
Energy and Mineral Resources Minister Bahlil Lahadalia urged geothermal developers to immediately begin developing their concessions, warning that delays could hamper Indonesia’s efforts to accelerate the energy transition. He asked companies already holding concessions to stop delaying project execution, arguing that the retention of allocated rights slows the entire sector.
With an installed capacity of approximately 2.7 GW against an estimated potential of around 23 GW, the minister called for support from investors, developers, and regulators alike.
The event, recognised as the world’s largest geothermal event, took place on 19, 21 August 2026 at the Jakarta International Convention Center. This year’s event theme was “Energy Self-Sufficiency for a Stronger Indonesia: Geothermal as the Baseload Driving Energy Transition and Security,” reflecting the government’s push to position firm, round-the-clock geothermal output at the centre of its national power strategy.
Regulatory changes and new work area awards
On the government’s part, a revision of Government Regulation No. 7 of 2017 on the indirect utilisation of geothermal energy is already being prepared to improve investment returns, alongside a revision of Presidential Regulation No. 112 of 2022 governing the acceleration of renewable energy development for electricity supply.
The ministry officially granted new geothermal permits to state-owned electricity company PT PLN for the Mount Ungaran Working Area and to PT Telaga Rano Geothermal for the Telaga Ranu working area.
Both allocations are intended to bring fresh exploration capital into regions that have remained undeveloped under prior permit holders.
Key commercial agreements signed at the event
At the convention in Jakarta on August 20, 2026, a series of commercial agreements were executed. These included a Joint Study and Development Agreement between PT Cakrawala Power International and PT Baker Hughes Indonesia on an off-grid data center powered by geothermal energy, and a Joint Study Agreement between PT Pertamina Geothermal Energy and PT Elnusa Petrofin on the utilisation of green hydrogen derived from geothermal sources.
PLN signed a Letter of Intent with a consortium of PT Pertamina Geothermal Energy and PT PLN Indonesia Power for the purchase of electricity from the 15 MW Lahendong Binary unit in North Sulawesi.
PLN and Sarulla Operations Ltd also signed an LOI for the restoration of the 330 MW Sarulla geothermal power plant. The project is the world’s largest single-contract geothermal power plant, located in North Tapanuli Regency, North Sumatra.
Separately, MCI Renewables and Baker Hughes signed a Strategic Partnership Agreement covering the development of surface and subsurface technologies and domestic manufacturing.
The event also included the submission of a decree establishing a Geology Study Program with a geothermal concentration at Nusa Cendana University in East Nusa Tenggara, and the announcement of a plan to procure three 2.5 MW binary geothermal power units for captive use.
Where Indonesia fits in the global geothermal picture
The IIGCE is recognised as the world’s largest geothermal event , and Indonesia’s resource base gives the summit unusual weight in international energy discussions.
According to the International Energy Agency, geothermal energy still supplies less than one percent of global electricity demand. Countries such as Kenya, which draws more than 40 percent of its generation from geothermal, and Iceland, which covers nearly 30 percent of electricity and around 90 percent of heating, demonstrate what scaled-up deployment can achieve.
Indonesian officials cited the improving economics of new drilling and materials technologies as reinforcing the case for moving faster on undeveloped concessions.
The regulatory revisions announced in Jakarta are expected to be published for public comment later this year.
For primary sourcing on the agreements and permit awards, see the IIGCE 2026 official site and reporting from Petromindo on the deals signed at the convention.
At the same time, Indonesia’s minister made clear that data alone will not close a gap of more than 20,000 MW. Only faster permitting, revised tariffs, and decisive action by concession holders will.
