Indonesia's geothermal power growth falls short of expectations

Geothermal power plant in Indonesia. (Photo: API)

The latest report from the Indonesian Geothermal Association (API) reveals that the geothermal power generation capacity is projected to increase by only 43MW by 2023, falling significantly short of the 190MW target. Experts attribute this shortfall to challenges in obtaining development licenses, excessive localization requirements for components, and prolonged negotiations with the state-owned electricity company (Perusahaan Listrik Negara, PLN) over the Power Purchase Agreements (PJBL).