Indonesia’s Geothermal Giant PGE Targets 1GW Capacity to Power Green Transition

JAKARTA, Investortrust.id — PT Pertamina Geothermal Energy Tbk (PGEO), the geothermal arm of Indonesia’s state-owned oil and gas giant Pertamina, is ramping up its expansion efforts to cement its role in the nation’s energy transition. The company has officially set a strategic roadmap to reach 1 gigawatt of installed capacity by 2028, a significant jump from its current 727-megawatt footprint.

PGE’s roadmap is a bellwether for Indonesia’s commitment to its 2060 Net Zero Emission target. By aligning its expansion with the government’s 2025–2034 electricity procurement plan (RUPTL), PGE is signaling a transition from localized operations to a national-scale renewable powerhouse. With a 3-gigawatt resource pipeline waiting to be unlocked, the company is positioning geothermal energy as the stable, weather-independent backbone of the country's future power grid.

"We have a target of 1 gigawatt by 2028 and 1.7 gigawatts by 2032. That is our target," stated Muhammad Taufik, Corporate Secretary of PGE, during a media visit to the Kamojang geothermal area in West Java on Sunday (June 28, 2026). He acknowledged that while the target is ambitious, it remains a realistic goal underpinned by a robust project pipeline.

Financing the Green Future

A major hurdle for any infrastructure-heavy energy project is capital, but PGE has cleared a significant financial hurdle. The company recently obtained "green book" status, a designation that flags priority projects for international investors and lenders. This status is expected to provide the necessary liquidity to accelerate project development and strengthen PGE’s capital structure as it scales toward its 2032 capacity goals.

The Kamojang facility, the historic site of Indonesia's first geothermal exploration 100 years ago, remains the crown jewel of PGE's operations. Currently housing five units with a total capacity of 235 megawatts, the site supplies electricity to over 260,000 households daily. It stands as a operational template for reliability, as its power production remains constant regardless of weather patterns or fossil fuel price volatility.

Beyond the Power Grid

PGE is also rethinking the value proposition of geothermal heat. At the Kamojang site, the company has deployed a "Geothermal Dry House" technology that utilizes excess heat from steam traps to dry coffee beans. This innovation has slashed drying times from over a month to as little as three days, creating a 300% boost in operational efficiency for local farmers.

The project is already bearing fruit, with PGE facilitating exports of 20 tons of coffee to markets in Asia and Europe. This "direct use" application of geothermal energy is part of a broader sustainability effort known as the KANYAAH program, which integrates geothermal heat into aquaculture, organic fertilizer production, and local conservation efforts. With 15 consecutive "Gold Proper" awards for environmental management, PGE is proving that large-scale energy development can exist in harmony with local economic growth and environmental stewardship.