Indonesian sovereign wealth fund to facilitate cooperation for 19 geothermal projects
Signing of Memorandum of Understanding for cooperation between PT Pertamina Geothermal Energy and PT PLN Indonesia Power (source: Danantara Indonesia)
Carlo Cariaga
5 Aug 2025
Danantara Indonesia has facilitated a cooperation agreement between two geothermal state-owned enterprises, seeking to accelerate energy resilience.
PT Danantara Asset Management has facilitated the signing of a partnership agreement between PT Pertamina Geothermal Energy (PGEO) and PT PLN Indonesia Power (PLN IP) for strategic cooperation for the development of geothermal energy. It is expected that as many as 19 geothermal projects, with a total capacity of 530 MW, will be accelerated through operational synergy and cross-entity coordination.
As outlined in the Heads of Agreement, the two parties will work together specifically on the 30-MW Ulubelu Bottoming Unit in Lampung and the 15-MW Lahendong Bottoming Unit in North Sulawesi. These two projects are considered part of a “quick-win” strategy enabling PGEO to reach 1GW installed capacity by 2030. Moreover, the scope of work includes formulating partnership schemes, utilizing geothermal working areas (WKP) owned by each part, aligning of project implementation plans, and implementing technical and commercial feasibility studies.
PGEO and PLN IP have also been tasked to establish a Joint Working Team and a Joint Committee. Cooperation between the two parties is considered an integral part of Indonesia’s national strategy for developing a strong, sustainable, and domestic-sourced energy system.
“Through this partnership, we are exploring collaborative schemes that will allow for the measurable and progressive optimization of geothermal potential,” said Simon Aloysius Mantiri, President Director of PT Pertamina (Persero). “Together with PLN and Danantara Indonesia, we are ready to accelerate the implementation of strategic projects that directly contribute to the national energy transition target and increase the renewable energy mix.”
Just a few weeks ago, PGEO announced the start of commercial operations of the 55-MW Lumut Balai Unit 2 geothermal power plant in South Sumatra.
PT Danantara Asset Management is the operational holding of Danantara Indonesia (Daya Anagata Nusantara Investment Management Agency), a sovereign wealth fund launched earlier this year. The purpose of Danantara is to act as an investment vehicle to increase the global competitiveness of Indonesia’s state-owned enterprises (SOE). The fund was created via an amendment to Law No. 19/2003 on State-Owned Enterprises that seeks to make SOEs more efficient, transparant, and globally competitive while ensuring their contribution to Indonesia’s economic growth.
With an initial capital of $61 billion, Danantara aims to finance major infrastructure projects and enhance SOE profitability. The initial strategy involves the takeover of the management of both PT Pertamina and PT PLN, as well as financial institutions, and mining and telecommunications companies.
“We are committed to ensuring that every strategic asset management initiative is carried out with accountable, professional, and in line with international standards,” commented Rosan Roeslani, CEO of Danantara Indonesia.
Source: Bisnis.com, Viva.co.id, and ASEAN Briefing
