| Abstract |
The Government of Indonesia (GOI) has been developing plans to support the energy transition towards new and renewable energy (NRE) and carbon neutrality by the year 2060. As stated in the national energy general plan (RUEN) and mentioned in numerous media sources, Indonesia targets 23% of NRE in the energy mix by the year 2025 by adding a sum of 38 GW capacity from various sources of NRE. One of the key resources in the realization is geothermal energy, for which, GOI has targeted a total of 3,575 MW of installed capacity by 2025. However, even with government, state owned enterprises, and private developers’ investments, Indonesia’s geothermal energy utilization is currently at 9.81% and has yet to be maximized. Many companies and investors take part in the development of the geothermal energy sector in Indonesia through agreements and partnerships, contributing to the 2,293 MW current geothermal installed capacity. These entities set ambitious goals for exploration and driving the nation’s geothermal energy growth. These goals are supported by sector-related policies and regulations. These regulations are related to PLN’s authority as the electricity off-taker, fiscal and non-fiscal incentives, management restrictions, investment requirements, and tariff policies. Developers and investors demand higher incentives and certainties for their investments due to the immense challenges related to the cost and risk at every project phase. Hence, the Government of Indonesia is on the search to find the ideal balance between PLN’s purchasing power and developer’s requests as new policies evolve and are put to test. This paper discusses the geothermal business outlook in Indonesia, regulations governing renewable energy policies in Indonesia, new geothermal tariffs, the most recent changes in policies, geothermal developers operating in Indonesia, and the top contributors in the Indonesian geothermal sector along with their company roadmaps. |