According to him, one thing investors dislike is complicated regulations; the more complicated the regulations, the less attractive they are.
"Our program over the past year was to cut various regulatory steps that hinder the acceleration of the geothermal sector," Lahadalia said at the opening of the Indonesia International Geothermal Convention & Exhibition (IIGCE) 2025 in Jakarta on Wednesday.
In 2024, the ESDM Ministry launched a digital platform for geothermal management called Genesis, where Geothermal Working Area (WKP) auctions will be conducted on the platform starting in 2025.
Furthermore, through the 2025-2034 Electricity Supply Business Plan (RUPTL), the government will build 48,000 circuit kilometers as a commitment to encouraging the development of new and renewable energy.
With this commitment, Lahadalia believes Indonesia is better prepared to become the world's largest geothermal electricity producer.
"Geothermal energy is a renewable energy source and Indonesia has quite large reserves, the largest in the world. We can only manage approximately 10 percent, which means there is still 90 percent of this potential," Lahadalia said.
He said that Indonesia has significant geothermal resource potential, reaching 23,742 megawatts, and believes that with that amount, there is still significant opportunity for geothermal development in Indonesia.
Furthermore, Lahadalia said that with an installed geothermal electricity capacity of 2,744 megawatts, Indonesia as a global producer of geothermal electricity ranks second only to the United States, which has 3,937 megawatts of geothermal electricity.
Related news: Geoscience is key to safer geothermal exploration, expert says
Related news: Solar power becomes pillar of renewable energy transition in NTT
Related news: Danantara helps Pertamina, PLN forge geothermal collaboration
Translator: Arnidhya Nur Zhafira, Cindy Frishanti Octavia
Editor: Azis Kurmala
Copyright © ANTARA 2025
