Indonesia, officially the Republic of Indonesia, is a country in Southeast Asia, between the Indian and Pacific oceans. It is the world’s largest island country, with the capital in the city of Jakarta. Indonesia is divided into 34 provinces.

As of 2019, Indonesia was a net importer of oil and still relied heavily on fossil fuels for power generation. Of the total installed national power capacity, 88% was sourced from fossil fuels while 12% came from renewable energy.

Indonesia’s renewable energy policy

Indonesia’s government has set a target of 23% renewable energy by 2025. 

Geothermal energy in Indonesia

Indonesia’s geothermal sector has vast potential and its installed geothermal power capacity the second-largest in the world in 2019. Geothermal energy is expected to play a significant role in reducing Indonesia’s greenhouse gas emissions. 

As of 2019, Indonesia had 1.9 GW of installed geothermal power and plans to develop an additional 4.6 GW to help meet the government’s target of renewable energy.

In September 2019, the World Bank approved a USD150 million loan for Indonesia to scale up investment in geothermal energy. The loan is accompanied by USD127.5 million in grants from the Green Climate Fund and the Clean Technology Fund, two institutions supporting climate-friendly development.