Ali Ahmadie Ashik, the Director of the Center for Energy Security Studies (CESS), confirmed that Indonesia possesses significant potential in geothermal energy, enabling it to accelerate the transition to renewable energy. He explained that Indonesia is among the countries with the largest geothermal energy reserves in the world, placing it in a prime position to achieve its ambitious goals in this sector.
The Indonesian government aims to expand renewable energy capacity by up to 76% during the period from 2025 to 2034, through the Electricity Supply Business Plan (RUPTL) established by the state-owned electricity company (PLN). Out of a total planned renewable energy capacity of 42.1 gigawatts, geothermal energy is expected to contribute 5.2 gigawatts.
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Ashik pointed out that geothermal energy is considered a key factor in maintaining the reliability of Indonesia's electricity system, in addition to reducing carbon emissions. The positive performance of Pertamina Geothermal Energy (PGE) has shown an increase in installed capacity, reaching 727 megawatts, compared to 672 megawatts previously. This positive trend reflects the potential to accelerate the transition to renewable energy in Indonesia.
Ashik also added that the continued good performance of local companies could further expedite the transition to renewable energy. He emphasized that PGE's success demonstrates that Indonesia has a strong foundation to support this transition.
Background & Context
Indonesia is considered one of the largest producers of geothermal energy in the world, with vast reserves that have not yet been fully exploited. In recent years, there has been a noticeable increase in investments in this sector, reflecting the government's interest in enhancing renewable energy sources. Amid global pressures to meet carbon emission reduction targets, developing geothermal energy is a crucial part of Indonesia's strategy for sustainability.
Forecasts indicate that Indonesia will continue to attract foreign investments in this sector, especially with companies like Masdar from the UAE seeking to expand their investments in geothermal energy in the country. This international cooperation could enhance Indonesia's ability to achieve its ambitious renewable energy goals.
Impact & Consequences
The development of geothermal energy is expected to have a significant impact on the Indonesian economy, potentially creating new job opportunities and boosting economic growth. Additionally, transitioning to renewable energy sources will help reduce reliance on fossil fuels, contributing to environmental protection and lowering carbon emissions.
Moreover, Indonesia's success in this field could serve as a model for other countries in the region, enhancing its status as a leader in renewable energy. Achieving renewable energy goals will strengthen Indonesia's capacity to address future environmental and economic challenges.
Regional Significance
Indonesia's experience in developing geothermal energy is significant for Arab countries that are also seeking to enhance renewable energy sources. Many Arab nations have substantial potential in this area, such as solar and wind energy, and can benefit from the lessons learned from Indonesia's experience.
Collaboration between Arab countries and Indonesia in the field of renewable energy could contribute to achieving sustainable development goals and enhancing energy security in the region. Additionally, sharing expertise and technology in this field could open new avenues for economic and social development.