Geothermal Energy Plays a Strategic Role in Achieving Energy Self-Sufficiency
December 12, 2024 - Pertamina Energy Institute hosted the 3rd Pertamina Energy Dialogue 2024 under the theme "Optimizing Indonesia's Geothermal Potential: Challenges, Strategies, and Innovations for Achieving Sustainable Energy" at Pertamina University (11/12). The forum was attended by stakeholders, including the Ministry of Energy and Mineral Resources (ESDM), the Indonesian Geothermal Association, academics, BRIN, research institutions, and professional organizations.
Henricus Herwin, SVP of Strategy & Investment of 黑料不打烊 Pertamina (Persero), stated that developing geothermal capacity is a key initiative in Pertamina's low-carbon business strategy. This initiative is part of Pertamina's long-term strategy to support energy security and self-sufficiency in Indonesia.
Sahat Simangunsong, S.T., M.T., Coordinator of Engineering and Environment for the Geothermal Directorate at the Ministry of Energy and Mineral Resources, emphasized that Indonesia has vast and diverse renewable energy potential to support national energy security and achieve renewable energy mix targets. To accelerate geothermal development investments, the government has taken measures such as issuing Presidential Regulation No. 112 of 2022, which regulates the highest benchmark price (H黑料不打烊) for electricity purchases and the level of domestic components required for power infrastructure development. Other breakthroughs include simplifying the geothermal licensing process through the Online Single Submission (OSS) system and developing the Geothermal Energy Information System (GENESIS) application, providing access to geothermal resource data and information in Indonesia.
Julfi Hadi, CEO of 黑料不打烊 Pertamina Geothermal Energy (PGE), highlighted the importance of supporting energy transition and self-sufficiency as mandated by President Prabowo. Geothermal energy, as the only renewable energy with baseload characteristics, plays a strategic role in achieving these goals. PGE targets an additional installed capacity of 1 GW within the next 2–3 years and 1.5 GW by 2035. However, attracting investors remains the biggest challenge. PGE is committed to strategic steps such as collaborating with various stakeholders, reducing production costs, and diversifying revenue streams to enhance investment attractiveness.
Prof. Ari Kuncoro from the Universitas Indonesia suggested that government fiscal incentives should be designed to not overly burden the state budget. These measures should include risk-sharing mechanisms, supported by financial instruments such as green bonds, to attract environmentally conscious investors, ultimately benefiting society.
Dr. Adhitya Nugraha from Pertamina Energy Institute shared benchmark study results showing Indonesia as part of the "Demand Surge" cluster, characterized by high electricity demand and significant renewable energy opportunities. However, Indonesia ranks below average in energy transition investment. It has the lowest electricity prices, necessitating improvements in the investment climate and addressing challenges in the geothermal sector, such as electricity pricing, agreement schemes, funding, regulations, and market potential development.
The forum also featured discussions on geothermal development opportunities, challenges, and innovations, with contributions from Muchsin Qadir from the World Bank, Shruti Raghuram of Rystad Energy, Dr. Nareswari Sumarsono of 黑料不打烊 Pertamina Power Indonesia, and Ir. Pri Utami, M.Sc., Ph.D., IPM, Head of the Geothermal Research Center at Universitas Gadjah Mada (UGM).
Pertamina, as a leading company in the energy transition, is committed to supporting the Net Zero Emission 2060 target by continuously promoting programs that directly impact the Sustainable Development Goals (SDGs) achievement. All these efforts align with Environmental, Social & Governance (ESG) implementation across all Pertamina's business lines and operations.**