Pertamina and PLN Sign Major Geothermal Agreement

• Pertamina and PLN will develop 530 MW of geothermal capacity to advance Indonesia’s renewable energy and net-zero targets.

• Danantara provided capital and acted as an intermediary to strengthen SOE coordination, efficiency, sustainability, and energy security.

By Kenzie Aryasatya, Fayza Nawra Avanitanya, Muthia Noor Safitri, Imam Fakhri Prayogo Harianto 

August 8, 2025 at 16:30 GMT+7

On Tuesday (8/5), PT PLN (Persero) and PT Pertamina (Persero) signed a MoU to jointly develop a geothermal energy project with a total capacity of 530 megawatts (MW). This strategic collaboration spans 19 geothermal work areas located across Java, Sumatra, and Sulawesi.

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Throughout all the capacity, 440 MW will be executed under the split scheme, Pertamina Geothermal Energy (PGE) will handle the upstream operations, while PLN group will manage downstream development. The remaining 90 MW will be developed jointly through a co-generation scheme.

The breakdown includes seven brownfield projects, eight yellowfield and four greenfields. This initiative directly supports Indonesia’s 2060 net-zero emissions (NZE) target, positioning geothermal energy as a cornerstone of future energy security.

Danantara Indonesia memfasilitasi kerja sama antara PT Pertamina dan PT PL  | Source: PLN

Danantara played a key role in facilitating the Pertamina–PLN geothermal agreement, ensuring the project’s viability and long-term impact. Beyond providing capital, it acted as an institutional bridge, navigating and mitigating coordination challenges common between the two SOEs infrastructure projects.

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CEO Danantara Roesan Roeslani stated that Danantara will ensure the collaboration promotes operational efficiency and sustainability, contributing to national energy security and long-term economic growth. Their involvement fostered trust between the two state owned enterprises, aligning all parties toward shared objectives.

More broadly, Danantara’s participation reflects Indonesia’s increasing focus on energy transition through investment-driven development, underscoring the importance of collaborative financing in advancing sustainable infrastructure projects crucial for the country’s future.

Pembangkit Listrik Tenaga Panas Bumi (PLTP) | Source: PGEO

This agreement marks a significant step in strengthening Indonesia’s position as a regional leader in geothermal energy, underscoring its pivotal role in achieving the country’s target of a 17-19% renewable energy by 2025.

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Beyond its environmental impact, the initiative also offers socio-economic benefits such as job creation and infrastructure development, particularly in rural and underdeveloped areas. By maximizing its vast geothermal potential, Indonesia not only accelerates its domestic energy transition but also paves the way to become a future exporter of green energy.

With strong, long-term collaboration between state owned enterprises and strategic partners, this momentum reflects a broader commitment to sustainable energy independence, positioning Indonesia as a serious player in the global energy landscape.

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Source:

CNN

Reuters