Pertamina Geothermal Unit Reaches 1,932 MW as Indonesia's Renewable Mix Lags Government Target
Indonesia's state energy giant expands geothermal capacity while conventional output holds flat, with renewable penetration at 17.3% against a 30% target for 2034.
Pertamina Geothermal Energy now manages 1,932 megawatts of installed capacity, combining 727 MW operated directly with 1,205 MW through joint operation contracts, the company reported Monday (2026-09-14). The figure represents roughly 70% of Indonesia's total installed geothermal base, giving the state-owned group a dominant position in the segment most central to its low-carbon pitch to investors and regulators.4
Conventional output is not being wound down to fund it. Pertamina can produce up to one million barrels of oil equivalent per day, supplying 69% of Indonesia's domestic oil production and 37% of its gas, according to the company's 2024 sustainability report. Running that base flat while layering in renewables is the operational logic the group is currently executing.3
Geothermal production reached 4,600 gigawatt-hours in the 2024 reporting period, with total new and renewable energy installed capacity at 1,878 MW by year-end. The move to 1,932 MW reported Monday (2026-09-14) reflects additions made through joint operation contracts since that date.3,4
Indonesia's broader energy transition is running behind the pace the government has set. The country's renewable energy mix reached 17.3% in the first half of 2026, against a Ministry of Energy and Mineral Resources target of 30% by 2034, ministry data showed. At the current pace, Pertamina's geothermal expansion helps but does not close that gap on its own, with power sector electrification and demand-side switching both moving slowly.4
Pertamina's 2024 revenues reached Rp190 trillion, generated predominantly from oil, gas and refinery operations. The company has also established itself as Indonesia's leading carbon trading entity, with a 55% national market share in that segment — a credential that supports sovereign-linked capital raising for transition spending. The government holds a special Series A share while Danantara Indonesia, the sovereign wealth fund, owns 99% of Series B shares, retaining full state control over capital deployment.3,1
The domestic content requirement adds another consideration. Pertamina reported 71.24% local content utilisation, verified externally, signalling to Indonesian policymakers that its capex cycle is generating domestic industrial activity rather than primarily flowing to foreign equipment suppliers.3
On gas supply specifically, INPEX agreed in principle with bp, PT Perusahaan Gas Negara, PT PLN Energi Primer Indonesia and Shell Eastern Trading on a project targeting 9.5 million tonnes per annum of LNG — equal to about 10% of Japan's total LNG imports — alongside up to 35,000 barrels of condensate daily and 150 million cubic feet of natural gas per day, Japan NRG Weekly reported on 25 May (2026-05-25). Platts JKM LNG front-month was trading at $24.88 per MMBtu on Monday (2026-09-14), a price environment that makes new Indonesian LNG capacity potentially attractive to Asian buyers facing tighter Atlantic supply.2
ICE Brent crude front-month was trading at $108.17 per barrel on Monday (2026-09-14), up 0.85% on the session. Prices at that level support cash generation from Pertamina's conventional upstream, giving the company financial flexibility to fund its transition programme without immediately forcing a trade-off against hydrocarbon maintenance spending.4
Pertamina's chief executive has stated that maximising legacy businesses while accelerating decarbonisation remain simultaneous priorities, with 2060 set as the net-zero horizon. Near-term domestic fuel supply commitments mean the conventional business is not on a deliberate decline curve.1
For investors watching Pertamina's capital allocation, the 17.3% renewable share against a 30% target by 2034 is the clearest measure of where Indonesia sits. Progress toward the Ministry's target — and whether Pertamina's geothermal additions are sufficient to move that number meaningfully — is the nearest concrete signal to track.4