PT Ormat Geothermal Indonesia, a subsidiary of U.S.-based Ormat Technologies Inc., plans to invest up to $1 billion (approximately Rp 16.2 trillion) in Indonesia’s geothermal projects by 2030.
Dion Murdiono, President Director of Ormat Geothermal Indonesia, shared that the company has already invested $250 million in the country during its 10 years of operations.
Over the next five years, Ormat aims to ramp up its investments to meet the $1 billion target by 2030.
“We’ve already invested around $200 million to $250 million in Indonesia so far, and we plan to continue investing with the goal of reaching $1 billion by 2030,” Dion told CNBC Indonesia on Friday (February 14).
Indonesia is an attractive destination for geothermal investment, according to Dion, due to three key factors:
1. Indonesia possesses the world’s second-largest geothermal resources, after the U.S.
2. Favorable tariffs and incentives for investors.
3. A supportive investment climate and regulatory framework that fosters foreign investment.
“These factors make Indonesia one of the top destinations for geothermal investment. The U.S. remains the best geothermal market for us, but Indonesia is a close second,” Dion added.
He credited Ormat’s continued investment in Indonesia to the strong support from the Indonesian government.
“The regulations and government support have been outstanding. We appreciate the efforts of the Indonesian government, the Ministry of Energy and Mineral Resources, and the Directorate General of Renewable Energy and Energy Conservation (EBTKE) for their significant support in opening up investment opportunities,” Dion said.
However, he noted that there is still room for improvement, particularly in offering more incentives to attract foreign companies.
“There’s still work to be done, but overall, we see geothermal investment in Indonesia as attractive, feasible, and worthwhile,” Dion concluded.
Although Ormat has been operating in the U.S. for 60 years, its expansion into Indonesia began just a decade ago.
Listed on the New York Stock Exchange, Ormat operates 1,200 MW of geothermal power plants globally, with 900 MW of that capacity located in the U.S.
One of Ormat’s key geothermal projects in Indonesia is the Sarulla Geothermal Power Plant (PLTP) in North Sumatra. Ormat holds a 12.75% stake in the Sarulla consortium, alongside Medco, Itochu, Kyushu, and Inpex.
The Sarulla PLTP, operated by Sarulla Operations Ltd (SOL), has a capacity of 3 x 110 MW, making it one of the world’s largest geothermal power projects.
Editing by Reiner Simanjuntak
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