PLN and INPEX Join Forces to Advance Geothermal Energy in Indonesia

Indonesia and Japan strengthen their energy partnership with a focus on renewable energy through a new collaboration between PLN Indonesia Power and INPEX Geothermal Ltd. This partnership, marked by a memorandum of understanding (MoU) signed on December 5, 2024, during the 8th Indonesia Japan Energy Forum in Bali, aims to explore and develop Indonesia's vast geothermal potential.

A Strategic Step Toward Energy Independence

Under Indonesia's Prabowo-Gibran administration, achieving energy independence has become a critical national mission, aligning with the government's "Asta Cita" vision for a sustainable and prosperous future by 2045. As a subholding of PLN, PLN Indonesia Power plays a vital role in transitioning the country's energy infrastructure to renewable sources like geothermal energy.

Indonesia boasts an impressive geothermal potential of 23 GW but has only utilized 11% of this capacity. By partnering with INPEX, a company renowned for its expertise in geothermal technology, PLN aims to accelerate progress in harnessing this untapped resource. Edwin Nugraha Putra, CEO of PLN Indonesia Power, emphasized the importance of this collaboration in achieving Indonesia's net-zero emissions target by 2060 and establishing the company as a global leader in geothermal energy.

Japan’s Role in Green Energy Transition

Japan, a leader in renewable energy innovation, supports Indonesia's energy goals by sharing its technological expertise. Masanori Tsuruda, Deputy Commissioner for International Affairs at Japan’s Ministry of Economy, Trade, and Industry, reiterated Japan's commitment to reducing greenhouse gas emissions by 46% by 2030 and achieving carbon neutrality by 2050. Through strategic partnerships like this, Japan accelerates the global shift toward sustainable energy systems.

Potential Impact of the Partnership

The MoU outlines joint studies and development initiatives that leverage INPEX's technical experience and PLN's operational capabilities. By focusing on geothermal projects, this partnership not only supports Indonesia’s renewable energy targets but also sets the stage for innovative energy solutions that could be applied globally.

The collaboration between PLN and INPEX signals a promising future for geothermal energy in Indonesia. With the combined resources and expertise of these industry leaders, Indonesia is well-positioned to enhance its renewable energy landscape, reduce dependence on fossil fuels, and become a significant contributor to the global green energy movement.

A Collaborative Vision for the Future

As both countries align their renewable energy strategies, this partnership serves as a testament to the power of international cooperation in addressing global energy challenges. The joint efforts of PLN Indonesia Power and INPEX Geothermal are a critical step toward a sustainable, energy-independent future for Indonesia.