Geo Dipa, Danareksa partner to promote industrial use of geothermal power in Indonesia
#image_title
PT Geo Dipa Energi and PT Danareksa are promoting the use of geothermal power for industrial sites, starting with a pilot project at KITB in Central Java.
State-owned geothermal developer and operator PT Geo Dipa Energi (GDE) (Persero) has signed a Memorandum of Understanding (MoU) with state-owned holding company PT Danareksa (Persero) to promote the use of geothermal power in industrial areas in Indonesia.
An initial pilot project will be implemented under the MoU at the Batang Integrated Industrial Estate (PT Kawasan Industri Terpadu Batang / PT KITB), a Special Economic Zone in Central Java.
Under the partnership, GDE will supply electricity from the Dieng geothermal field through PT PLN’s distribution network to the Batang Industrial Estate. According to Yadi Jaya Ruchandi, VP of Business Performance and Asset Optimization Cluster at Danareksa, explained that the pilot site was strategic considering that global business players are committed to Environmental, Social, and Governance (ESG) standards in their supply chains. The pilot project is expected to be operational by 2028.
Danareksa President Director Yadi Jaya Ruchandi further added that a clean energy supply is now a highly sought-after resource of international investors and businesses.
If the pilot project in KITB is implemented successfully, the model could be replicated in other industrial zones. Danareksa manages seven industrial areas in Indonesia, located across Sumatra, Java, and Sulawesi.
President Director of GDE Yudistian Yunis stated that the agreement and pilot project is in line with GDE’s role as the government’s fiscal tool to promote the use of green energy to grow the economy. Through this initial step, the hope is to build support from more stakeholders and increase Indonesia’ s business competitiveness through the strategic use of geothermal energy.
GDE is currently working on the expansion of both the Dieng and Patuha geothermal fields, setting a target of commercial operations by 2027. In late 2025, the company secured a $180 million from the Asian Development Bank to support the capacity expansion project.
Source: Dunia Energi, IniKata, and PT Geo Dipa Energi
