Pertamina and PLN Join Forces to Accelerate 19 Geothermal Projects, Backed by Danantara
Main Takeaways
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Pertamina and PLN Join Forces to Accelerate 19 Geothermal Projects, Backed by Danantara
JAKARTA, Investortrust.id — Indonesia’s state energy firm PT Pertamina (Persero) and national electricity provider PT Perusahaan Listrik Negara (Persero) signed a memorandum of understanding on Tuesday, Aug 5, 2025, to jointly develop geothermal energy projects with a total capacity of 530 megawatts, in a partnership facilitated by the sovereign wealth fund Danantara.
The collaboration is part of a broader push to accelerate Indonesia’s transition to clean energy and meet the government’s Asta Cita vision for energy self-sufficiency and carbon reduction. The agreement paves the way for the development of 19 geothermal projects across the archipelago, strengthening Indonesia’s energy security and green economy agenda.
Danantara Indonesia Chief Executive Officer Rosan Roeslani said the initiative aligns with national priorities for sustainable growth, and reflects Danantara’s commitment to accountable and internationally aligned strategic asset management.
“We are committed to ensuring that the management of strategic assets adheres to global standards of governance and professionalism. By enabling integrated cross-SOE collaboration, Danantara supports inclusive and sustainable economic growth, while reinforcing Indonesia’s energy independence,” Rosan said in Jakarta on Tuesday.
Integrated Strategy and Execution
The partnership will encompass the structuring of cooperation models, utilization of each party’s geothermal working areas, acceleration of project implementation, feasibility studies, and the formation of a joint coordination committee.
Pertamina President Director Simon Aloysius Mantiri said the agreement underscores Pertamina’s commitment—through its publicly listed subsidiary PT Pertamina Geothermal Energy Tbk (PGEO)—to scaling up geothermal utilization as a cornerstone of Indonesia’s clean energy future.
“This collaboration allows us to explore synergistic models to optimize geothermal resources in a measured and progressive way. Together with PLN and Danantara, we’re accelerating strategic project delivery to contribute to the national energy transition targets and expand the renewable energy mix,” Simon said.
IPP Projects and 1 GW Ambition
Beyond the MoU, Pertamina Geothermal Energy and PT PLN Indonesia Power (PLNIP) also signed a head of agreement to co-develop geothermal power generation projects. The partnership includes a consortium agreement for two Independent Power Producer (IPP) projects under the “Cogen” quick-win strategy, designed to help PGEO reach 1 gigawatt in installed capacity within the next two to three years.
These pilot initiatives will focus on the Ulubelu Bottoming Unit (30 MW) and Lahendong Bottoming Unit (15 MW), setting a benchmark for further geothermal project rollouts.
Indonesia currently holds the world’s second-largest geothermal potential at 24 GW, but has only installed around 2.5 GW to date. Simon called on stakeholders to seize this opportunity for transformative growth.
“This is a golden opportunity to push geothermal as a reliable and clean energy source. Through synergy, we can position Indonesia as a global leader in geothermal energy and sustainable development,” he said.
The MoU was signed by Pertamina CEO Simon Aloysius Mantiri and PLN CEO Darmawan Prasodjo, witnessed by Rosan Roeslani at Danantara Tower in Jakarta. The event was organized by the National Investment Management Agency Daya Anagata Nusantara (BPI Danantara) through its investment arm, PT Danantara Asset Management.
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