Pertamina Geothermal Starts 55 MW Lumut Balai Unit 3 Project
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JAKARTA, Investortrust.id — Pertamina Geothermal Energy or PGEO starts work on the Lumut Balai Geothermal Power Plant Unit 3 on Monday, Jan 12, 2026 in South Sumatra to add 55 megawatts of clean power capacity as Indonesia accelerates its renewable energy transition, a move expected to support long term electricity supply and emissions reduction. The project was formally launched through a kick off meeting marking the start of execution.
The Lumut Balai Unit 3 facility is located in the Lumut Balai Geothermal Working Area in South Sumatra and is scheduled to reach commercial operation in 2030. The project forms part of Indonesia’s broader geothermal expansion roadmap.
PGEO said it was strengthening coordination with local governments, communities, contractors, PLN, and related institutions to ensure smooth implementation at every stage. The company emphasized alignment on technical readiness, permitting, financing, and risk management.
PGEO Director of Operations Ahmad Yani said the kick off meeting was a critical step as renewable energy development entered a decisive phase under the national electricity plan for 2025 to 2034. He added that the Lumut Balai Unit 3 project was listed as a strategic priority in the government’s Blue Book 2025 to 2029 issued by the Ministry of National Development Planning.
The project followed the successful operation of Lumut Balai Unit 2, which began commercial operations in June 2025 with a capacity of 55 megawatts. Together, the units reinforced PGEO’s target to reach 1 gigawatt of installed capacity within the next two to three years and 1.8 gigawatts by 2033.
PGEO has identified geothermal potential of up to 3 gigawatts across 10 working areas it manages, forming the basis of its long term growth strategy. The company said geothermal development also delivered broader economic benefits beyond electricity supply.
From 2010 to 2024, Indonesia’s geothermal industry generated around Rp 21.43 trillion in non tax state revenue and Rp 10.82 trillion in revenue sharing funds between 2019 and 2024. These contributions supported regional income and local economic growth through multiplier effects.
PGEO currently operates 727 megawatts of installed capacity across six operating areas and is advancing other strategic projects. These include the Hululais Units 1 and 2 geothermal plants with a combined capacity of 110 megawatts and co generation projects with PLN Indonesia Power totaling 230 megawatts.