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Unlocking Indonesia's Geothermal Potential

Overview

On December 1, 2025, Project InnerSpace released a groundbreaking report titled "The Future of Geothermal in Indonesia," providing a detailed overview of the country's geothermal landscape. This report emphasizes Indonesia's capabilities in harnessing geothermal energy and points toward its role in meeting the nation’s industrial heat demand as well as its renewable energy goals.

The Promise of Geothermal Energy

Geothermal energy is derived from the natural heat within the Earth, and Indonesia possesses rich geothermal resources thanks to its location along the Pacific Ring of Fire. Recent advancements in drilling techniques and subsurface technology are making geothermal solutions more affordable and accessible than ever before. The report estimates that Indonesia has the potential to generate 2,160 gigawatts of geothermal energy, significantly surpassing existing hydrothermal resource estimates.

As the nation embraces these technologies, it could potentially satisfy up to 90% of its industrial heat requirements in critical manufacturing sectors. Furthermore, this shift would reduce Indonesia’s dependence on coal and imported fuels, resulting in the creation of over 650,000 jobs in the process.

Voice of Industry Leaders

Jackson Grimes, Director of Global Engagement at Project InnerSpace, noted that Indonesia stands as a global leader in hydrothermal geothermal systems. The country’s legacy in the oil and gas sector has equipped it with the necessary technical know-how and operational capabilities to drive forward initiatives in geothermal energy, especially in areas such as geothermal cooling and industrial heat.

Grimes emphasized that modernizing the regulatory framework is essential. By extending the scope of geothermal regulations beyond just electricity to include next-generation geothermal systems and direct-use heat applications, Indonesia can unlock potentially thousands of megawatts of clean energy, enhancing industrial competitiveness.

Next-Generation Technologies

Next-generation geothermal systems represent a significant evolution in this energy sector. Unlike traditional geothermal systems, these innovative technologies do not depend on underground reservoirs, thus making it easier to optimize energy development based on actual demand. This adaptability means geothermal energy can be deployed near communities, minimizing land-use conflicts and maximizing socio-economic benefits.

Fabby Tumiwa, the CEO of the Institute for Essential Services Reform (IESR), elucidated that the practical implementation of next-generation geothermal technologies will require leveraging expertise from the oil and gas industries, contributing to the acceleration of geothermal energy projects across Indonesia.

Key Recommendations

The report outlines several actionable recommendations to enhance Indonesia’s geothermal energy framework, which include:

• - Updating definitions and licensing frameworks to encompass a broader range of geothermal applications, such as industrial heating and district cooling.
• - Establishing ambitious national targets for geothermal energy output across both electricity and industrial applications.
• - Creating a streamlined permitting process dubbed the "geothermal fast lane" to facilitate quicker project initiation.
• - Reforming financial incentives to ensure local communities see tangible benefits from geothermal projects.
• - Expanding training programs to build a skilled workforce capable of supporting geothermal development.

Next Steps and Feasibility Studies

In light of one of the report's findings on geothermal cooling potential, Project InnerSpace plans to fund a feasibility study at Gadjah Mada University to explore the implementation of a campus geothermal cooling system. If successful, the project may receive further development funding through the organization's GeoFund initiative.

About Project InnerSpace

Project InnerSpace is a leading non-profit dedicated to fostering global geothermal energy development, aiming to dismantle barriers hindering the sector's growth by 2030. For more information, visit www.projectinnerspace.org.

About IESR

The Institute for Essential Services Reform advocates for the transition to a low-carbon energy system, utilizing evidence-based public policy and strategic partnerships with diverse stakeholders. More information can be found at https://iesr.or.id/.