Indonesia to offer 12 geothermal areas by 2026 to boost renewable energy

Indonesia's Ministry of Energy and Mineral Resources is set to offer 12 promising geothermal areas by 2026 as part of an ambitious plan to boost renewable energy development. This initiative includes three Geothermal Working Areas (WKP) and seven Preliminary Survey and Exploration Assignment Areas (WPSPE), alongside two WKPs managed by the state electricity company, PT PLN (Persero).

Eniya Listiani Dewi, Director General of New, Renewable Energy and Energy Conservation (EBTKE), emphasized the government's aggressive approach to geothermal energy. "This is to be even more aggressive," she stated, noting the increase from initial plans. The goal is to accelerate the development of geothermal resources and unlock new investment opportunities across the archipelago.

For the three WKPs slated for offering in 2026, the government anticipates a total development capacity of 130 megawatts, requiring an estimated investment of US$741 million. These areas, Hamiding (50 MW), Danau Ranau (40 MW), and Songgoriti (40 MW), are projected to generate substantial employment, with an estimated 569 direct jobs and an additional 3,416 jobs through multiplier effects. WKP Hamiding is targeted for commercial operation by 2029, while Danau Ranau and Songgoriti are expected to begin operations in 2032.

In addition to the WKPs, seven WPSPE areas with a combined potential reserve of 247 MW will be offered, requiring an investment of approximately US$140 million. These areas include Maranda Kawende (26 MW), W. L. Seporaki (32 MW), Sirejo (40 MW), Talamau (57 MW), Simisuh (27 MW), Massepe Sulili (40 MW), and Banda Baru (22 MW). The process for offering these areas involves several stages, including document review and an auction, which is expected to take about three months after requirements are met.

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This is to be even more aggressive. Actually, last year we planned only two, but it was opened up to 10, if I'm not mistaken. Now, this year there are five plus seven, and that's already more.