Jakarta, INTI - PT PLN Indonesia Power (PLN IP) and PT Pertamina Geothermal Energy Tbk. (PGE) have signed a Letter of Intent (LoI) regarding the purchase of electricity from two geothermal power plant projects with a combined capacity of 45 megawatts (MW).
The LoI covers the development of the 30 MW Ulubelu Binary (Bottoming) Unit in Lampung and the 15 MW Lahendong Binary (Bottoming) Unit in North Sulawesi.
President Director of PLN IP, Bernadus Sudarmanta, stated that Indonesia possesses vast geothermal potential that needs to be optimized into a reliable source of clean energy.
"Through the collaboration between PLN Indonesia Power and PGE on the Lahendong and Ulubelu projects, we aim to optimize this potential into reliable clean energy while simultaneously strengthening national energy independence," said Bernadus in an official statement.
Bernadus believes that accelerating the energy transition requires collaboration among various parties, from PT PLN (Persero), PLN IP, and PGE, to the government, investors, and industry players. Such synergy is considered crucial for expediting the construction of reliable and sustainable clean energy power plants.
Within this strategic cooperation pipeline, the total potential development capacity is projected to reach 230 MW.
Utilizing Unused Geothermal Fluids
The Lahendong Binary and Ulubelu Binary geothermal plants utilize bottoming technology to harness heat from geothermal fluids, or brine, that had previously gone unused. This heat is processed to generate additional clean electricity from geothermal plants that are already in operation.
According to Bernadus, the use of this technology allows for the optimization of geothermal resources within existing Geothermal Working Areas (WKP). Consequently, generation capacity can be increased without relying entirely on the development of new geothermal fields.
Previously, the Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, stated that Indonesia possesses immense geothermal potential. However, that potential must be transformed into energy that delivers direct benefits to the community, drives economic growth, and strengthens national energy security.
"We must harness this energy to generate electricity that benefits the public, stimulates the economy, and bolsters the nation's energy independence," said Bahlil at the 12th Indonesia International Geothermal Convention & Exhibition (IIGCE) 2026.
Bahlil added that accelerating geothermal development requires the courage to turn potential into tangible projects through collaboration between the government and the business sector.
Conclusion
PLN Indonesia Power (PLN IP) and Pertamina Geothermal Energy (PGE) have signed a Letter of Intent (LoI) for the purchase of electricity from two geothermal power plant projects with a combined capacity of 45 MW. This consists of the 30 MW Ulubelu Binary project in Lampung and the 15 MW Lahendong Binary project in North Sulawesi. PLN IP views collaboration among PGE, PLN, the government, investors, and industry players as crucial for accelerating the utilization of geothermal potential as a reliable source of clean energy while strengthening national energy independence.
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