Geothermal energy investment potential in Indonesia

Both Indonesia and the Philippines have abundant geothermal resources. Indonesia, in particular, has the greatest potential in Southeast Asia. Nevertheless, the Philippines has seen rapid development of geothermal energy in terms of both policies and incentives, making the existing installations and the geothermal energy market mechanism more comprehensive than in Indonesia. The Philippines develops geothermal energy through auction mechanism as its market is relatively mature. In 2021, the Department of Energy of the Philippines completed its third round of Open and Competitive Selection Process (OCSP), in which five potential sites with a total capacity of 218 MW were put out for tender. However, two of the smallest sites[1] did not receive bids and they might be included in the fourth round of OCSP in 2023, as the investment incentives for small sites are still under discussion.

Table 1. Feed-in tariff for geothermal energy in Indonesia