| Title | Cost Optimization Strategies for Geothermal Power Construction in Indonesia: Insights and Lesson Learned from the U.S. and Turkey |
|---|---|
| Authors | M. Rizqi Al Asyari, Daniel Adityatama, Vincentius Adven Brilian, Aulia Rizky Pratama, Agung Wisnu Mukti |
| Year | 2026 |
| Conference | World Geothermal Congress |
| Keywords | |
| Abstract | Indonesia’s geothermal sector plays a vital role in achieving national renewable energy goals, given its large resource base and low environmental impact. This paper evaluates Indonesia’s geothermal power plant development landscape, with a focus on identifying cost optimization opportunities by drawing lessons from the United States and Turkey—countries with advanced geothermal industries, particularly in medium- to low-temperature resource utilization. The study highlights Indonesia’s current emphasis on high-temperature geothermal fields, while future growth is expected to increasingly involve medium- to low-temperature resources. These developments will require deployment of technologies such as the Organic Rankine Cycle (ORC). Comparative analysis reveals that Indonesia’s geothermal development costs remain significantly higher than those in the U.S. and Turkey, influenced by geological variability, limited industrial capacity, and less mature supporting infrastructure. Key insights from U.S. and Turkish practices include the benefits of competitive market environments, localized manufacturing, and the adoption of cost-effective technologies like binary systems. For Indonesia, potential cost-reduction strategies include fostering competitive procurement, supporting local manufacturing, splitting Engineering, Procurement, and Construction (EPC) contracts, and integrating pilot projects with well testing. Strengthening Front-End Engineering Design (FEED) practices can further optimize EPC implementation. The paper recommends policy measures to promote cost efficiency, including incentives for local content, pilot-scale technology trials, and strategic partnerships. By adapting proven international practices, Indonesia can lower development costs, improve technological adaptability, and accelerate geothermal infrastructure expansion. |