Indonesia geothermal potential remains largely untapped at 11 percent

Indonesia possesses a geothermal potential of approximately 24 gigawatts, representing about 40 percent of the world's total capacity. However, only 11 percent, or roughly 2.7 gigawatts, has been developed for electricity generation.

Geo Dipa Energi CEO Yudistian Yunis identified several barriers to expansion, including high drilling costs—ranging from 6 to 8 million USD per well—and long drilling durations. Public perception also poses a challenge, as some communities fear large-scale geothermal concessions may lead to deforestation.

To address these issues, the Ministry of Energy and Mineral Resources has announced 14 exploration locations with a combined potential of 732 megawatts. Developing these sites will require an estimated additional investment of 400 million USD. Experts suggest that Indonesia should look beyond large-scale high-enthalpy steam plants to include medium and low-enthalpy resources, such as binary cycle technology, to maximize its volcanic energy resources.