A Major Milestone in Indonesia’s Renewable Energy Push

Barito Renewables Energy (IDX: BREN) has officially launched five new geothermal projects through its subsidiary PT Pertamina Geothermal Energy Tbk (PGE), signaling a significant step forward in Indonesia’s transition toward clean, sustainable power. The projects, inaugurated in early July 2025, represent both a bold corporate move and a national milestone in achieving renewable energy targets.

The Barito Renewables geothermal projects span several key locations, including Kamojang, Lahendong, Ulubelu, and Lumut Balai, with combined additional capacity intended to enhance the country's geothermal output and grid stability. These projects not only add to Indonesia’s growing renewable portfolio but also demonstrate how public-private partnerships can drive meaningful climate action.

As one of the largest geothermal energy producers in Southeast Asia, PGE — now under Barito Renewables' majority ownership — continues to leverage Indonesia’s vast geothermal potential, estimated to be the second-largest in the world after the United States.

With this expansion, Barito Renewables is positioning itself at the center of Indonesia’s clean energy transformation, aligned with government goals to reach a 23 percent renewable energy mix by 2025 and net-zero emissions by 2060.

Project Locations and Capacity Overview

The five geothermal projects launched include both new and upgraded facilities aimed at boosting operational efficiency and increasing output. Below is a breakdown of the projects:

1. Kamojang Geothermal Unit (West Java)
2. This unit underwent capacity optimization and infrastructure enhancements, increasing reliability and output.
3. Lahendong Unit (North Sulawesi)
4. An important geothermal field that received major reinjection well upgrades to support sustainable reservoir management.
5. Ulubelu Units 3 and 4 (Lampung)
6. These units were improved to operate more efficiently, supporting both base-load and peak demand.
7. Lumut Balai Unit (South Sumatra)
8. A new facility contributing approximately 55 MW to the grid, representing a significant addition to Indonesia’s geothermal base.

Altogether, the Barito Renewables geothermal projects are expected to contribute over 150 MW of new and optimized capacity to the national power grid. This aligns with Pertamina Geothermal Energy’s broader objective to increase its total installed capacity from 672 MW to over 1,000 MW in the coming years.

The projects also serve as testbeds for newer geothermal technologies, including binary systems and digital monitoring tools, further enhancing their environmental and operational performance.

Supporting Indonesia’s Climate and Energy Targets

The expansion of Barito’s geothermal portfolio arrives at a critical time. Indonesia is under mounting pressure to decarbonize its power sector, which still relies heavily on coal. According to the Ministry of Energy and Mineral Resources (ESDM), the country’s electricity mix was only 15.6 percent renewable in 2023. Geothermal energy, being a base-load renewable source, is key to achieving national clean energy targets.

These Barito Renewables geothermal projects support multiple government programs, including the “100% Electrification Ratio” goal and the updated National Electricity Plan (RUPTL 2021–2030), which aims to add over 4,000 MW of renewable energy generation capacity in the next five years.

Barito’s efforts are also consistent with Indonesia’s international climate commitments under the Enhanced Nationally Determined Contributions (ENDC) submitted to the United Nations Framework Convention on Climate Change (UNFCCC). By reducing dependency on fossil fuels, the company helps Indonesia progress toward its 31.89 percent emissions reduction target by 2030.

The projects have been praised by the Ministry of SOEs (BUMN), which emphasized the role of state-owned enterprises and their private sector partners in leading Indonesia’s clean energy transformation.

Geothermal’s Growing Strategic Role

Geothermal energy offers Indonesia distinct advantages: it is renewable, stable, and domestically sourced. Unlike solar and wind, geothermal provides 24/7 base-load power, making it ideal for stabilizing the grid and supporting industrial zones and growing urban centers.

However, geothermal development is also capital-intensive and technically challenging. Barito Renewables’ success in commissioning multiple projects simultaneously demonstrates strong financial planning, engineering capabilities, and risk management. The company has employed international best practices in environmental safeguards, community engagement, and reservoir monitoring.

Beyond energy generation, the Barito Renewables geothermal projects have created hundreds of local jobs, boosted regional economies, and contributed to rural electrification in underserved areas. By integrating local supply chains and vocational training programs, the company ensures that the benefits of energy transition are felt across all levels of society.

According to CEO Agus Prabowo of Barito Renewables, this multi-project launch is not the end, but a beginning. He stated that Barito is preparing additional geothermal development in untapped regions such as East Nusa Tenggara and West Sumatra, where geothermal potential remains underutilized due to infrastructure gaps.

Long-Term Vision and Industry Leadership

Barito Renewables is not only expanding its geothermal footprint — it is redefining what leadership in Indonesia’s clean energy space looks like. With strategic investments in renewables and a publicly listed subsidiary in Pertamina Geothermal Energy, the company is aligning shareholder value with national interest.

To finance future geothermal development, Barito is considering green bonds, blended finance mechanisms, and potential partnerships with global climate funds. The company is also exploring research collaborations with universities to advance geothermal drilling technologies and improve resource mapping.

In the long run, these Barito Renewables geothermal projects could serve as a blueprint for other energy developers navigating Indonesia’s regulatory landscape and diverse topography. The integrated approach — from resource exploration to power distribution — sets a precedent for efficient, scalable, and community-centered renewable energy projects.

The success of these geothermal projects will likely spur investor confidence in Indonesia’s clean energy market and open the door for greater private sector involvement.

Conclusion: A Giant Step Toward Energy Security

Indonesia’s future depends on reliable, sustainable, and inclusive energy systems. With the launch of five new geothermal projects, Barito Renewables and PGE have made a bold statement: that energy transition is not only necessary but achievable.

The Barito Renewables geothermal projects are more than just power plants. They are symbols of resilience, innovation, and collaboration in a country striving to balance growth with sustainability. As the region watches, Indonesia takes one giant step forward in harnessing the earth’s heat for the future of its people and planet.