Philippine top power company secures agreement with Sinar Mas for exploitation of Indonesia's extensive geothermal energy reserves

In an effort to bolster Indonesia's geothermal sector, First Gen, the world's largest integrated geothermal firm, has entered into a strategic partnership with PT DSSR Daya Mas Sakti, a subsidiary of PT Dian Swastatika Sentosa Tbk (DSSA), part of the Sinar Mas group.

The partnership aims to build capacity and knowledge transfer in Indonesia's geothermal sector, with a focus on developing 440 MW of geothermal power across six sites in West Java, Flores, Jambi, West Sumatra, and Central Sulawesi. This ambitious project is expected to help reduce Indonesia's reliance on coal, which currently contributes 62% to the country's energy mix.

Indonesia, with its vast geothermal reserves, holds 40% of the world's geothermal energy reserves. However, the growth in geothermal capacity has been slow, with an average annual growth rate of around 40 MW between 2023 and 2024. This partnership is a significant step towards addressing this issue and accelerating the development of Indonesia's geothermal industry.

Geothermal energy, being a clean and renewable source of power, plays a crucial role in the global transition towards sustainable energy. It contributes to 4.8% of Indonesia's energy mix currently, and its potential to reduce carbon emissions is substantial. The partnership between First Gen and PT DSSR Daya Mas Sakti is aligned with the Sustainable Development Goals 7 (Energy) and 13 (Climate), aiming to promote clean and sustainable energy solutions.

However, the geothermal industry in Indonesia faces challenges, such as the remote location of underground reservoirs and the costs and uncertainties associated with exploration, land clearing, and drilling. The partnership is poised to address these challenges, leveraging First Gen's expertise in geothermal energy production and PT DSSR Daya Mas Sakti's local knowledge and resources.

First Gen, through its subsidiary Energy Development Corporation, is also planning to drill 19 new geothermal wells in the Philippines, further solidifying its position as a global leader in geothermal energy. The company's commitment to clean and renewable energy is evident in its operations, making it a valuable partner in Indonesia's quest for a more sustainable energy future.

This partnership is not only significant for Indonesia but also for the broader Southeast Asian region, as it contributes to the SEA clean energy transition and the decarbonisation efforts in the region. It also aligns with the goals of reducing embodied carbon, minimising the carbon footprint, and combating global warming.

In conclusion, the strategic partnership between First Gen and PT DSSR Daya Mas Sakti marks a promising step towards a cleaner, greener, and more sustainable energy future for Indonesia. The development of geothermal energy across the six key regions in Indonesia will not only boost the country's energy mix but also contribute to the global fight against climate change.

Philippine top power company secures agreement with Sinar Mas for exploitation of Indonesia's extensive geothermal energy reserves