Pertamina Geothermal Energy (PGE), a subsidiary of Indonesia's state-owned oil and gas company Pertamina, has reported a significant milestone in 2024, achieving an all-time high in geothermal energy production. This accomplishment aligns with Indonesia's strategic objective to enhance energy self-sufficiency and increase the proportion of clean energy in its national energy mix.

Record Production in 2024

In 2024, PGE's geothermal operations reached unprecedented production levels, primarily supported by five key operational areas. This achievement underscores PGE's pivotal role in harnessing Indonesia's substantial geothermal potential, contributing significantly to the nation's renewable energy output. As of 2023, PGE managed a total operating capacity of 672 megawatts (MW) within its own working areas and an additional 1,205 MW under joint operating contracts, totaling 1,877 MW.

Strategic Initiatives for Enhanced Production

To attain this production milestone, PGE implemented several strategic measures aimed at optimizing geothermal output:

• Resource Optimization: Enhancing the efficiency of existing geothermal wells and infrastructure to maximize energy extraction.
• Technological Integration: Adopting advanced technologies to improve operational performance and reduce downtime.
• Capacity Expansion: Investing in the development of new geothermal projects to increase overall production capacity.

These strategies have been instrumental in elevating PGE's production capabilities, thereby supporting Indonesia's broader energy objectives.

Indonesia's Energy Self-Sufficiency and Clean Energy Targets

The Indonesian government is actively pursuing energy self-sufficiency, with a particular emphasis on expanding the share of renewable energy in the national energy mix. As of late 2024, renewable energy accounted for approximately 13.9% of Indonesia's energy structure, with geothermal energy contributing about 5%. The government has set an ambitious target to increase the renewable energy share to 23% by 2025.

PGE's Role in Achieving National Energy Goals

PGE's record-breaking production in 2024 positions the company as a key contributor to Indonesia's renewable energy landscape. By leveraging the country's abundant geothermal resources, PGE is not only advancing its corporate objectives but also playing a crucial role in supporting national energy policies aimed at sustainability and self-reliance.

Future Outlook

Looking ahead, PGE plans to further expand its geothermal capacity. The company has earmarked significant investments to increase its installed capacity to 1,000 MW by 2026, with a capital expenditure allocation of approximately USD 547 million for 2024.

These expansion plans are expected to bolster Indonesia's efforts to meet its renewable energy targets and reduce greenhouse gas emissions, thereby contributing to global climate change mitigation initiatives.

Conclusion

Pertamina Geothermal Energy's achievements in 2024 reflect a successful alignment of corporate strategy with national energy objectives. Through continued investment and strategic optimization, PGE is set to play a pivotal role in Indonesia's journey toward energy self-sufficiency and a sustainable energy future.