JAKARTA: In a significant move to accelerate the global clean energy transition, PT Pertamina Geothermal Energy Tbk (PGE) (IDX: PGEO) has entered into a Joint Study Agreement (JSA) with Zorlu Enerji Elektrik Üretim A.Ş., a leading Turkish energy firm. The agreement, signed in Ankara on April 10, was witnessed by Indonesia’s Coordinating Minister for Economic Affairs, Airlangga Hartarto, and Türkiye’s Minister of Agriculture and Forestry, İbrahim Yumaklı.
The signing took place during the Turkey-Indonesia CEO Roundtable Meeting, jointly hosted by the Indonesian Chamber of Commerce and Industry (KADIN Indonesia) and the Foreign Economic Relations Board of Türkiye (DEIK). This collaboration represents a strategic milestone in intergovernmental cooperation on renewable energy development, particularly in geothermal exploration and technology.
Under the agreement, both companies will jointly assess the feasibility of developing a geothermal power plant in one of Zorlu Enerji’s geothermal working areas in Turkey. This partnership is a direct follow-up to the Memorandum of Cooperation (MoC) signed between Indonesia’s Ministry of Energy and Mineral Resources and Turkey’s Ministry of Energy and Natural Resources during President Erdoğan’s state visit to Indonesia on February 12, 2025.
Julfi Hadi, President Director of PGE, emphasised the strategic importance of this collaboration:
“Our ambition is to build a clean, sovereign, and future-oriented energy ecosystem. Geothermal energy is an indigenous resource for both nations and plays a central role in achieving energy security and sustainability. This agreement is expected to catalyse technology transfer, foster a robust geothermal supply chain, and attract further investments into Indonesia’s renewable energy sector.”
Driving Regional Leadership in Geothermal Energy
Indonesia holds approximately 40% of the world’s geothermal reserves—an estimated 24 GW—positioning the nation as a global geothermal powerhouse. Recognising its strategic value, geothermal energy has become a cornerstone of Indonesia’s roadmap to achieve Net Zero Emissions by 2060.
With over four decades of operational experience, PGE is ramping up efforts to expand its installed geothermal capacity from 672 MW today to 1 GW by 2027, with a long-term goal of reaching 1.7 GW by 2034. The company has identified around 3 GW of potential reserves across 10 Geothermal Working Areas under its management.
Zorlu Enerji, a key player in Turkey’s geothermal landscape, echoed the importance of the agreement as a shared commitment to advancing the global geothermal agenda.
Beyond Energy: Paving the Way for Green Industry Innovation
This cross-border collaboration also lays the groundwork for broader opportunities in green business innovation. Beyond power generation, both companies will explore downstream prospects in geothermal by-products, such as green hydrogen, silica, and carbon credits—paving the way for diversified and sustainable business models.
The Joint Study Agreement marks a pivotal moment in strengthening bilateral relations between Indonesia and Turkey while demonstrating a concrete step toward global energy resilience and climate action.
