In the global push for clean energy, geothermal power emerges as a potential solution to meet the challenge.
But is switching to this energy source truly a wise choice, or do its benefits still outweigh its risks? Let’s take a closer look.
What Is Geothermal Energy?
Geothermal energy is a renewable energy source derived from the Earth’s natural heat. This heat comes from a combination of residual heat from the planet’s formation, tectonic activity, and the radioactive decay of minerals in the mantle and crust. It can be found in the form of steam, hot water, or heated rock beneath the Earth’s surface.
Indonesia is situated along the Pacific Ring of Fire, which explains its significant geothermal potential. This geological condition makes Indonesia one of the countries with the largest geothermal reserves in the world.
The advantages of geothermal power include a stable year-round supply that’s unaffected by weather conditions, as well as greenhouse gas emissions that are far lower than fossil fuel-based power plants.
Read More: The Process of Global Warming, From the Beginning to Its Impact
How Big Is Indonesia’s Geothermal Potential?
Indonesia’s abundant geothermal resources make the country not only a key player on the global stage but also an important contributor to its national energy strategy.
National Geothermal Energy Reserves
Indonesia holds one of the largest geothermal energy reserves in the world. According to Indonesia’s Ministry of Energy and Mineral Resources, the country’s potential is estimated at 23.6 GW spread across 362 locations.
By 2024, Indonesia had already installed around 2.6 GW of geothermal power capacity, making it the world’s second-largest producer of geothermal electricity.
Strategic Role in Energy Supply
Geothermal power plays a vital role in reducing Indonesia’s reliance on fossil fuels. As a reliable renewable energy source, geothermal can supply electricity consistently without being affected by weather, unlike solar or wind power.
Data from ESDM in 2024 shows that geothermal now accounts for about 5.3% of the national energy mix, strengthening energy security and supporting the transition to a low-carbon future.
Read More: 7 Organic Wastes That Produce Energy
What Are the Challenges in Implementing Geothermal Energy?
Despite its vast potential, geothermal development in Indonesia still faces challenges ranging from social issues and financing to technological adaptation.
Technical and Environmental Challenges
Geothermal projects require significant investment, particularly in the high-risk exploration stage. Even though the government and international institutions offer support such as blended finance and loans, uncertainty in tariffs and lengthy permitting processes remain major obstacles.
Indonesia also lacks domestically produced geothermal turbine technology, creating reliance on imports, which drives up project costs.
Many geothermal sites are located in sensitive conservation areas, where access and construction can damage ecosystems. Local opposition can also hinder project progress.
Geothermal Energy Distribution Challenges
Much of Indonesia’s geothermal potential lies in remote areas with rough terrain and limited infrastructure, making it costly to transport equipment and build supporting facilities.
Uneven electricity grid distribution also restricts energy delivery. Large investments are needed to build transmission lines linking geothermal sources to major consumption centers.
Addressing these challenges requires an integrated strategy to improve access, strengthen grid infrastructure, and secure project financing.
Read More: Why LNG Plays a Key Role in the Global Energy Transition?
LNG as a More Ready Option for Energy Transition
There are several reasons LNG (Liquefied Natural Gas) is considered a practical choice for the ongoing transition to clean energy.
Why LNG Is Currently More Ready Than Geothermal?
LNG is better positioned as a transitional energy source due to its mature global infrastructure. Facilities for liquefaction, LNG tanker fleets, and regasification terminals are already in place, ensuring a flexible supply that can quickly respond to global demand.
This established infrastructure enables large-scale international trade by sea, with LNG then distributed to consumers via pipelines or trucks.
In contrast, geothermal development requires massive investment and long lead times, as it depends on geological conditions often located in remote areas, necessitating power plant construction from scratch with complex technical and logistical challenges.
LNG also offers greater distribution flexibility. Once liquefied, it can be shipped to any terminal and delivered directly to consumers, whereas geothermal electricity can only be transmitted within proximity to its production site.
Read More: Why Switching to Green Energy Matters and How It Impacts the Planet?
LNG’s Role in Bridging the Path to Clean Energy
LNG is seen as a bridge toward cleaner energy because it produces around 50% less CO₂ than coal and releases almost no particulate pollutants.
This makes LNG the most viable fossil fuel alternative at present. By using LNG, coal consumption can be gradually reduced, allowing more time for the full development of renewable energy sources like geothermal.
References:
- EESC. Accessed 2025. Geothermal Energy Can Make The Green Transition Happen
- Kementerian ESDM. Accessed 2025. Kementerian ESDM Kejar Tambahan 90MW dari Panas Bumi
- Kementerian ESDM. Accessed 2025. Dirjen RIda Uraikan Tantangan Pengembangan Panas Bumi Ke Depan
