UAE-Based Company Interested in Expanding Investment in Indonesia's Geothermal Sector

Illustration. (Photo: Dok. Antara)

JAKARTA - The renewable energy company Masdar of the United Arab Emirates expressed interest in continuing and expanding investments in Indonesia's geothermal sector as part of their commitment to supporting the clean energy transition.

Head of Business Development Asia-Pacific Masdar Fatima Al Suwaidi said Indonesia's position as the world's second largest geothermal producer, coupled with strong engineering capabilities at Pertamina Geothermal Energy (PGE), makes the sector a strategic area for Masdar's future expansion.

"We strongly support the geothermal industry in Indonesia... And we are very interested in continuing this partnership and collaboration," Al Suwaidi told Antara on the sidelines of the Abu Dhabi Sustainability Week in Abu Dhabi, UAE, Tuesday, January 13.

Masdar began to get involved in Indonesia's geothermal sector in February 2023 through its investment in PGE. PGE's geothermal facility produces around 4.8 TWh of energy each year and is able to avoid carbon emissions of around 3.9 million tons.

Al Suwaidi said Masdar's partnership with PGE reflects the company's commitment to diversifying its clean energy portfolio in Indonesia.

He said geothermal energy is one of the rare clean baseload energy sources in the world, with Indonesia occupying the second position globally after the United States.

"There is a lot of engineering potential and expertise at PGE. We are very happy to partner with them and support their international growth ambitions," he said.

He emphasized that Masdar sees Indonesia as a long-term partner in Indonesia's energy transition, including through ongoing projects such as the Cirata Floating PV project with a capacity of 145 MW in West Java.

"Indonesia has a very promising future in the energy sector. There have been many positive changes and steps forward in the last three to four years in Indonesia's renewable energy industry," he said.

According to data from the Ministry of Energy and Mineral Resources (ESDM), Indonesia's geothermal potential reaches 23,742 megawatts (MW).

The current installed capacity reaches 2,744 MW, placing Indonesia in second place after the United States with 3,937 MW.