Lessons from Indonesia: Mobilizing Investment in Geothermal Energy

This case study by the World Resources Institute examines Indonesia's efforts to mobilize investment in its geothermal energy sector, highlighting the transition from a regulatory environment that favored coal to one that addresses exploration risks and pricing distortions.

• Indonesia possesses the largest geothermal power source globally, with an estimated potential of 27 GW, though less than 5 percent of this capacity has been developed.
• Investment in Indonesia's geothermal sector was historically hindered by a regulatory framework that prioritized coal-fired energy and the high financial risks associated with site exploration.
• To stimulate growth, the Indonesian government implemented several measures: a 2003 law targeting 6,000MW of installed capacity by 2020, the creation of a government fund to share exploration risks, and the introduction of a regional feed-in-tariff to provide pricing certainty.
• Future success in the sector depends on maintaining a stable investment climate and implementing transparent governance with environmental and social safeguards, particularly as much of the geothermal potential is located in forests inhabited by indigenous people.

APA

World Resources Institute (2013). Lessons from Indonesia: Mobilizing Investment in Geothermal Energy. https://www.wri.org/insights/lessons-indonesia-mobilizing-investment-geothermal-energy

Chicago

World Resources Institute. Lessons from Indonesia: Mobilizing Investment in Geothermal Energy. 2013. https://www.wri.org/insights/lessons-indonesia-mobilizing-investment-geothermal-energy.

Wikipedia

{{cite report |author=World Resources Institute |title=Lessons from Indonesia: Mobilizing Investment in Geothermal Energy |date=26 June 2013 |url=https://www.wri.org/insights/lessons-indonesia-mobilizing-investment-geothermal-energy |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldresourcesinstitute2013lessons, author = {{World Resources Institute}}, title = {{Lessons from Indonesia: Mobilizing Investment in Geothermal Energy}}, institution = {World Resources Institute}, year = {2013}, month = jun, url = {https://www.wri.org/insights/lessons-indonesia-mobilizing-investment-geothermal-energy}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }