PT PLN Indonesia Power (PLN IP) and PT Pertamina Geothermal Energy Tbk (PGE) have announced plans to form a consortium to jointly develop several geothermal power plants (PLTP), reinforcing their commitment to Indonesia’s clean energy transition.
The move follows the signing of a Head of Agreement (HoA) between the two state-owned energy companies to collaborate on the 30 MW Ulubelu Binary Unit Geothermal Power Project in Lampung Province and the 15 MW Lahendong Binary Unit Geothermal Power Project in North Sulawesi.
Beyond these two projects, the HoA also outlines broader cooperation to explore geothermal development across various Geothermal Working Areas (WKP), with a total indicative capacity of up to 530 MW.
Bernadus Sudarmanta, President Director of PLN IP, a subsidiary of state electricity provider PT PLN (Persero), said the agreement reflects the companies’ joint commitment to supporting Indonesia’s Net Zero Emissions target by 2060 and the Enhanced Nationally Determined Contribution (ENDC) by 2030.
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“Geothermal development offers a long-term solution for delivering reliable and sustainable energy,” said Bernadus in a written statement issued on Sunday, August 17, 2025. “This partnership also reflects the concrete contributions of state-owned enterprises (BUMN) in advancing the low-carbon development agenda. Through this consortium, we aim to carry out procurement and construction processes efficiently, transparently, and with a results-oriented focus.”
The Ulubelu and Lahendong projects are currently in the procurement phase for Independent Power Producers (IPPs) under PT PLN (Persero)’s electricity purchasing program for the Sumatra and Sulawesi regions. Once the projects receive official Letters of Appointment from PLN, a Joint Venture Company (JVC) will be established to lead their development.
These initiatives represent a strategic synergy between state-owned enterprises to accelerate the growth of renewable energy and reinforce Indonesia’s commitment to a sustainable energy future.
Editing by Reiner Simanjuntak
