PT Pertamina Geothermal Energy (PGEO) and PT PLN Indonesia Power (PLN) have officially signed a Joint Development Agreement (JDA) which marks a new stage in effort to optimize the capacity of geothermal power plants in Indonesia. This new partnership follows up on a previously signed Joint Development Study Agreement (JDSA) between the two parties.

The first main focus of the partnership is the development of binary power generation units particularly in two target areas in Ulubelu and Lahendong. Based on the data, each of these has the potential to increase installed capacity by 30 MW and 15 MW, respectively.

The next step is for PGEO and PLN to complete the Power Purchase Agreement (PPA) quickly and efficiently, thus ensuring that these projects can be built and operated immediately. It is also hoped that the partnership can become a model for similar collaborations in the future.

“This collaboration will accelerate the development of more efficient and sustainable geothermal projects, as one of PGE’s strategic efforts to reach 1 GW in the next two years,” said Julfi Hadi, President Director of PGEO.

“We hope that this JDA can be an example for other renewable energy projects in Indonesia. With strong synergy and collaboration, we can achieve our common goal of creating a more sustainable energy future,” said Julfi.

The signing of this JDA is an important milestone in the journey of the two companies to support the energy transition in Indonesia. Through this strategic collaboration, PGE and PLN IP are determined to maximize the potential of geothermal energy, create economic value, and provide significant social and environmental benefits.