Tapping Indonesia's Geothermal Edge

Indonesia holds 40% of the world’s geothermal potential but has tapped just 9% of its reserves. It’s like an inexhaustible battery that never gets plugged in. Beneath the archipelago lies enough heat to power industries and cities with clean electricity around the clock. Yet most of it remains idle.

The gap isn’t due to lack of resources. It’s the result of long development cycles, high upfront investment and complex geology that has made geothermal harder to scale than solar or wind. For a country still dependent on coal for more than half of its power, that untapped resource is both a challenge and an opportunity. Unless it is brought online, Indonesia risks missing its emissions targets and slowing its economic growth. To achieve net-zero by 2060, the country needs to turn geothermal potential into reality.

Unlike solar and wind, geothermal provides baseload power that flows steadily 24/7. This reliability is essential as Indonesia works to electrify transportation, expand access across its thousands of islands and meet surging demand from new industries. Downstream mineral processing, digital infrastructure, and data centers are all coming online at a rapid pace. These energy-intensive sectors require stable power, not intermittent supply.

The government has recognized this imperative. Its latest Rencana Umum Perencanaan Tenaga Listrik (RUPTL) roadmap calls for 42.6 GW of new renewable capacity by 2034, with geothermal expected to be a cornerstone of that transition. 

More than 60% of new additions will come from renewables, reflecting a clear policy shift toward decarbonization. Yet despite abundant reserves, development has lagged. Projects often stall before reaching commercial operation, slowing national progress. Unlocking geothermal at scale will determine whether Indonesia can meet its climate goals while securing energy independence.

At the same time, the global energy landscape is shifting. Investors are prioritizing companies aligned with government-backed climate agendas. Geothermal is uniquely positioned as both a climate solution and a growth market able to generate long-term value by delivering clean, dependable power where it is most urgently needed.

Barito Renewables is stepping up to meet that opportunity. Through its subsidiary Star Energy Geothermal, it already operates more than 900 MW of geothermal capacity, making it Indonesia’s largest producer. With a proven track record across Salak, Darajat, and Wayang Windu, the company has built the expertise and operational excellence needed to expand at scale.

Now, Barito Renewables is investing $365 million across a new wave of projects. Capacity upgrades and new developments are underway, expected to add more than 100 MW in the next three years. These projects will move the company past the 1 GW milestone by 2025, and nearly 2 GW by 2030, anchoring geothermal as a central pillar of the nation’s clean energy system.

For Indonesia, this is about more than new megawatts. It’s about unlocking geothermal wealth and turning it into sustainable baseload power that supports growth, strengthens energy security and accelerates the path to net zero.

For investors, it signals more than project expansion. It underscores Barito Renewables’ role as a strategic partner in a government-backed energy transition, with a platform built for both stability and scale. With operational assets, financial strength, and a growth roadmap aligned with national priorities, Barito Renewables is turning untapped potential into long-term value for Indonesia and for its stakeholders.