# Indonesian energy sector developments

> Developing situation record from CLSTR: https://clstr.news/situations/indonesian-energy-sector-developments
> Updated: 2026-11-03T23:44:00.000Z. Sources: 19. Developments: 2.

In late 2026, various Indonesian energy entities reported strategic developments in gas supply, renewable energy capacity, and nuclear technology.

PT Pertamina Gas (Pertagas) and PT Perusahaan Gas Negara (PGN) secured a natural gas sale and purchase agreement with EMP Bentu Limited. The contract, valid until December 31, 2031, involves a supply volume of 2 to 3 BBTUD to support oil production lifting in Siak, Riau, and contribute to national energy self-sufficiency and decarbonization goals.

PT Pertamina Geothermal Energy Tbk (PGE) continues to advance its renewable energy targets, aiming for 1 GW of installed capacity by 2028 through projects such as Gunung Tiga, Hululais, and Lumut Balai. To accelerate these efforts, the company is currently operating four drilling rigs. PGE and PLN Indonesia Power are also finalizing a Power Purchase Agreement (PPA) for geothermal co-generation projects in Ulubelu and Lahendong, which is expected to be signed in December 2026.

In the nuclear sector, PT Pembangkit Listrik Nuklir announced a 200 MW floating nuclear power plant PPA with Rosatom for North Halmahera. This project follows a B2B model to avoid impacting the state budget.

Other developments include the Palembang waste-to-energy facility, which is 96% complete and expected to provide up to 20 MW of electricity by December 2026. In the solar sector, PT PLN (Persero) is preparing to develop 100 GWp of solar power capacity and has established an Energy Transition Laboratory for testing solar panels and batteries. Additionally, researchers from BRIN are exploring bioethanol production from palm oil waste, while PGN reported a 35.3 percent reduction in emissions via gas infrastructure and decarbonization efforts.

## Claims

- PT Patra Logistik is expanding fuel and LPG distribution to 5 terminals in Kalimantan. (reported by 2 sources)
- PT Pertamina Geothermal Energy aims for 1 GW capacity by 2028. (reported by 1 source)
- PGE and PLN Indonesia Power are finalizing a power purchase agreement for geothermal projects in Ulubelu and Lahendong. (reported by 1 source)
- The Palembang waste-to-energy facility is expected to start commercial operations on December 8, 2026. (reported by 1 source)
- Indonesia has an untapped biomass potential of 60.6 million tons per year. (reported by 1 source)
- PT PGN Subholding Gas realized an emission reduction of 29,574.87 tons of CO2 equivalent through August 2026. (reported by 1 source)
- The Palembang waste-to-energy project has a value of US$160 million. (reported by 1 source)
- PT PLN (Persero) inaugurated the Energy Transition Laboratory in South Jakarta. (reported by 1 source)

## Timeline

### 2026-11-03: Indonesia advances energy transition through nuclear, geothermal, and renewable projects

Indonesia is expanding its energy portfolio through floating nuclear power agreements, geothermal capacity targets, and waste-to-energy projects to support a national transition toward low-carbon infrastructure

17 sources. https://clstr.news/cluster/pertamina-geothermal-energy-targets-1-gw-capacity-by-2028

### 2026-10-31: Pertagas and PGN secure gas supply contract from EMP Bentu through 2031

Pertagas, PGN, and EMP Bentu Limited have signed a gas supply agreement valid until 2031 to support oil production in Riau and meet national energy targets.

2 sources. https://clstr.news/cluster/pertagas-and-pgn-secure-gas-supply-contract-from-emp-bentu-through-2031

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Cite as: Indonesian energy sector developments. CLSTR, https://clstr.news/situations/indonesian-energy-sector-developments
