Indonesia prepares draft regulation for geothermal direct use applications
Deden at the coffee drying facility using geothermal steam (source: Pertamina Geothermal Energy)
Carlo Cariaga
10 Jun 2025
The Ministry of Energy and Mineral Resources of Indonesia is drafting a regulation to establish a framework for direct use applications of geothermal energy.
Indonesia’s Ministry of Energy and Mineral Resources (MEMR) through the Directorate General of New, Renewable Energy and Energy Conservation (EBTKE) has started working on a draft regulation for direct use applications of geothermal resources.
The Guidelines for Geothermal Management for Direct Utilization aims to promote geothermal not only as a source for electricity generation, but as an enabler for tourism, agribusiness, and industry. This can help strengthen local economies, and encourage the growth of ecotourism and micro, small, and medium enterprises within the host communities of geothermal projects. However, such an industry still requires strong regulatory support to prosper.
“Direct utilization of geothermal energy is the new face of the clean energy sector that is oriented towards people’s welfare and environmental sustainability,” said Eniya Listiana Dewi, Director General of EBTKE.
“More than just a provider of clean energy, geothermal energy opens up opportunities for business and industrial innovation—from green hydrogen production, high-value mineral extraction, to geothermal-based ecotourism development.”
Eniya further explained that the planned regulation aims to establish a process for direct utilization of geothermal energy. This process will include the issuance of operation feasibility, guidance and supervision, resource conservation, and regulation of geothermal energy prices for direct utilization.
The MEMR has so far conducted a public consultation on the draft regulation to gather input from local government, geothermal associations, academics, business entities, and other relevant stakeholders.
Direct use applications of geothermal energy in Indonesia currently remain at pilot project scale. A noteworthy example is the coffee drying facility in Kamojang, which has helped create a more sustainable and efficient business ecosystem for local coffee entrepreneurs.
“This is in line with the Government’s efforts to promote a new paradigm, namely Sustainable Geothermal Development. An approach that emphasizes a balance between economic, social, and environmental benefits, and is in line with the Sustainable Development Goals (SDGs),” further added Eniya.
Source: Kontan.com
