Danantara is supporting the collaboration to boost power generation to advance the national energy security agenda and fast-track the transition to clean energy.
In a statement released on Tuesday, Danantara chief executive officer (CEO), Rosan Roeslani, explained that geothermal energy development is a national strategic agenda to strengthen energy security and encourage the transition to a low-carbon economy.
“Through cross-SOE (state-owned enterprise) collaboration, Danantara supports the creation of inclusive and sustainable economic growth, while strengthening Indonesia’s energy independence,” he said.
The initiative will support the National Energy Policy, namely the Enhanced Nationally Determined Contribution (ENDC) 2030 target, and the Net Zero Emission (NZE) 2060 vision by harnessing geothermal energy as a sustainable, new and renewable energy source, he informed.
The collaboration between PLN through PT PLN Indonesia Power (PLN IP) and Pertamina through PT Pertamina Geothermal Energy Tbk (PGE) was outlined in Heads of Agreements coordinated by Danantara Indonesia.
Roeslani said that the agreements have been formalized through a consortium agreement, specifically for the Ulubelu Bottoming Unit in Lampung and the Lahendong Bottoming Unit in North Sulawesi.
“Danantara will ensure that this collaboration promotes operational efficiency and sustainability, as a real contribution to national energy security and long-term economic growth,” he added.
In addition, the collaboration aims to determine the potential for geothermal power plant development, both through the initiation of new projects and the accelerated completion of ongoing projects.
He said that the scope of the partnership will include formulating an optimal cooperation scheme, utilizing each party’s geothermal working areas (WKP), aligning and accelerating project implementation, conducting technical and commercial feasibility studies, and establishing a joint working team and joint committee as a coordination forum for implementation.
Under the partnership, 19 existing projects with a capacity of approximately 530 megawatts (MW) will be accelerated through operational synergy and cross-entity coordination.
Furthermore, both parties have agreed to evaluate the potential for additional development, both in existing working areas and in new prospective areas.
Roeslani said that the potential capacity could reach 1,130 MW with an estimated investment value of up to US$5.4 billion, highlighting its strategic scale and concrete contribution to national energy security and the transition to clean energy.
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Translator: Muhammad Heriyanto, Resinta Sulistiyandari
Editor: Azis Kurmala
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