Indonesia Ranks Second Globally in Geothermal Energy Capacity
Indonesia currently holds the world’s second-largest capacity for harnessing Geothermal Energy, solidifying its position as a significant global player in the ongoing clean energy transition and showcasing its immense natural advantage.
Minister of Energy and Mineral Resources Bahlil Lahadalia announced this key metric at the 11th Indonesia International Geothermal Convention and Exhibition (IIGCE) 2025 in Jakarta, stating, “Indonesia is one of the largest geothermal hubs globally, second only to the United States.”
While the United States leads the world with an installed capacity of 3,937 megawatts (MW), Indonesia follows closely with 2,744 MW of installed geothermal capacity.
This existing capacity, however, represents only a fraction of the archipelago’s total estimated geothermal potential and reserves, which stand at a massive 23,742 MW, indicating enormous potential for future expansion.
Given this strategic resource, Lahadalia emphasized Indonesia’s willingness and eagerness to collaborate with international partners to accelerate the shift toward renewable energy sources globally.
He stressed that “We welcome opportunities to exchange technology, expertise, and best practices. Together, we can drive the clean energy revolution for a stronger economy and a sustainable future,” underscoring the necessity of global cooperation to tap into these vast, underdeveloped reserves.
The potential for geothermal energy to displace fossil fuels in the national energy mix is a core component of Indonesia’s ambitious climate goals.
Government Policies and Industry Commitment Drive Sector Growth
The Indonesian government has established a comprehensive suite of policies and frameworks designed to accelerate the development of its substantial geothermal energy reserves, working in tandem with the industry to build a robust and reliable sustainable energy system.
Director General of New, Renewable Energy, and Energy Conservation Eniya Listiani Dewi confirmed the comprehensive nature of the government’s approach, noting that a full policy package has been developed specifically to speed up geothermal development and simplify processes for investors.
She stated that “Indonesia is building not just targets, but an entire ecosystem to support growth. Our goal is to become a global model for sustainable geothermal energy,” signaling a holistic commitment to the sector’s success.
This ecosystem approach involves not only regulatory reforms but also financial mechanisms to de-risk and incentivize investment in this capital-intensive sector.
Chairman of the Indonesian Geothermal Association (INAGA) Julfi Hadi highlighted a crucial technical advantage of geothermal energy, referring to its remarkable reliability.
He called it the only renewable energy source capable of operating continuously with a capacity factor that exceeds 90 percent.
This high-capacity factor is a significant advantage, as it allows geothermal energy plants to function as baseload power sources, which are essential for maintaining grid stability and ensuring a consistent supply of electricity, unlike intermittent sources like solar or wind power.
Hadi concluded that “This makes geothermal the backbone of a sustainable energy system,” reinforcing its strategic importance.
IIGCE 2025 Highlights Future Collaboration and Innovation
The 11th Indonesia International Geothermal Convention and Exhibition (IIGCE) 2025 served as a vital platform for both industry leaders and international delegates, marking the launch of a new center for excellence and showcasing the sector’s commitment to future innovation and investment.
Held at the Jakarta Convention Center (JCC) Senayan, the IIGCE 2025 event was a major gathering point for the global geothermal energy community.
The convention was host to over 150 companies and featured international investment forums, which are critical for matching Indonesia’s vast resource potential with the necessary capital and technology from abroad.
The event attracted delegates from 22 countries, indicating strong international interest in Indonesia’s leading role and development trajectory in the clean energy space.
A significant highlight of the convention was the official launch of the Indonesia Geothermal Excellence Center.
This new center is expected to play a pivotal role in accelerating domestic expertise, fostering innovation, and providing a hub for research and development within the geothermal energy sector.
The overall success of the IIGCE, as a showcase for both the immense geological opportunity and the government’s supportive policy environment, reinforces the nation’s commitment to leveraging its volcanic geology as a cornerstone of its renewable energy future, aiming to surpass its current position and become the world leader.
