Green power project: Energy companies aggressively expand

This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.

Bisnis Indonesia - Proyek pembangkit hijau: Emiten energi gencar ekspansi

14 April 2025

By Ana Noviani

Bisnis, Jakarta – Renewable energy issuers are increasingly expanding their business portfolios by partnering with global entities to increase the share of green energy.

This step is being taken amidst the significant potential for clean energy both domestically and internationally. For example, PT Pertamina Geothermal Energy Tbk (PGEO) has partnered with Turkish energy company Zorlu Enerji Elektrik Üretim A.S to explore cooperation in developing geothermal power plant (PLTP) projects. The agreement was formalised in a joint study agreement (JSA) signed in Ankara, Turkey, on Thursday (10/4).

President Director of Pertamina Geothermal Energy, Julfi Hadi, stated that through this joint study, PGEO will explore the potential for geothermal development cooperation that can strengthen the strategic direction of Indonesia and Turkey in accelerating the global transition to clean energy.

"We aim to build a cleaner, more sovereign, stable and future-oriented energy system. Geothermal energy is key to achieving this target as it is an indigenous energy source for both countries," he said in a statement on Sunday (13/4).

Furthermore, the cooperation is expected to open opportunities for accelerating technology transfer, building a robust domestic geothermal industry supply chain and attracting investment in renewable energy development, particularly for Indonesia.

The cooperation agreement between PGE and Zorlu Enerji follows a memorandum of cooperation previously signed by the Indonesian Ministry of Energy and Mineral Resources and the Turkish Ministry of Energy and Natural Resources during President Erdogan's state visit on 12 February 2025.

For both companies, this collaboration is a concrete step in promoting inter-country cooperation in the renewable energy sector. Both parties will begin studying the potential for developing PLTP projects in Zorlu Enerji's geothermal permit area in Turkey.

In the next two years, PGEO aims to increase its installed capacity from 672 MW to 1 GW and 1.7 GW by 2034. In terms of potential, the company has identified reserves of 3 GW from ten geothermal working areas (WKP) managed independently. Zorlu Enerji is the largest player in Turkey's geothermal industry. This JSA is expected not only to strengthen strategic cooperation between the two countries but also to open other cooperation opportunities for PGE. "This is a tangible action by PGE in accelerating the optimal utilisation of geothermal energy while promoting downstream development in Indonesia's renewable energy sector."

Waste-to-energy

On the other hand, the consortium of PT Maharaksa Biru Energi Tbk (OASA) and PT Indoplas Energi Hijau has reportedly started working on a waste-to-energy facility project with an investment value of Rp2.6 trillion in Cipeucang, South Tangerang, Banten.

In this waste-to-energy project, OASA is partnering with China Tianying Inc (CNTY). The Chinese company is said to have experience in building waste-to-energy facilities in various countries.

The OASA and CNTY consortium was selected as the winner of the waste-to-energy project tender in Cipeucang through a Tender Winner Determination Letter issued by the South Tangerang Local Government authority on 21 March 2025.

Next, PT Indoplas Energi Hijau is awaiting formal appointment from the Mayor of South Tangerang.

Bobby Gafur Umar, President Director of Maharaksa Biru Energi, stated that the Cipeucang project is expected to begin construction in early 2026. Bobby mentioned that the project also solidifies OASA's path as the largest main player in this business.

The Cipeucang waste-to-energy project is built under a build-operate-transfer (BOT) cooperation scheme with a concession period of 27 years and a construction period of three years.

"We hope the groundbreaking can happen this year. The construction of this waste processing infrastructure is a testament to the local government's commitment to improving waste management," he said.

The Cipeucang waste-to-energy facility will process at least 1,100 tonnes of waste using moving grate incinerator technology. MGI technology is said to be able to process up to 90% of waste and produce green energy without causing environmental disturbances such as smoke and odour.

Next article: Sustainable tourism continues to grow

Previous