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Writer's pictureGeni Buana Nusantara

The Future of Enhanced Geothermal Systems (EGS) in Indonesia: Opportunities and Challenges



Enhanced geothermal systems (EGS), or artificial geothermal energy, have the potential to power more than 65 million homes and businesses in the United States and are the next frontier in renewable energy applications. Natural geothermal systems, called hydrothermal systems, require three main elements to generate electricity: heat, fluid and permeability. This permeability means that the fluid can flow freely through underground rocks. However, in many areas, although the underground rock is hot, there is not enough natural permeability or fluid. In such situations, enhanced geothermal systems (EGS) can be applied to create artificial reservoirs to utilize the heat as an energy source.


Enhanced Geothermal System (EGS) works by injecting water into hot rocks at the depth of the earth through injection wells, creating fractures that allow fluid to flow and absorb heat from the rock. This hot water is then pumped back to the surface through production wells to be used in the electricity generation process. Once the heat has been extracted, the water is cooled and recirculated back into the ground, creating a continuous cycle. This technology enables the utilization of geothermal energy in areas that do not have natural reservoirs, making it a potential solution for expanding the use of renewable energy in various locations.


The future of Enhanced Geothermal Systems (EGS) in Indonesia has great opportunities to contribute to achieving clean energy and sustainability targets. However, there are several challenges to overcome including supportive regulations, necessary technologies, and international funding and partnerships. Currently, regulations in Indonesia are starting to support the development of EGS with discussions on policy and regulatory frameworks in events such as the Indonesia International Geothermal Convention & Exhibition (IIGCE) 2024. The Indonesia International Geothermal Convention & Exhibition (IIGCE) 2024 is projected to secure EUR 3.7 billion (IDR 62.585 trillion at the end of September exchange rate of IDR 16,915) in investment through various agreements that will be signed at the event.


Despite the obstacles, optimism remains high that geothermal energy will play an important role in Indonesia's energy transition towards a greener future. IIGCE 2024 is expected to be a strategic platform for stakeholders to share insights and solutions to overcome challenges in geothermal energy development. In addition, there are cooperation agreements to be signed, such as the renewable energy partnership between Indonesia and New Zealand, as well as a memorandum of understanding between the Indonesian Ministry of Energy and the Icelandic Ministry of Environment. This cooperation is expected to accelerate the development of EGS and help Indonesia achieve its net-zero target by 2060.


Let us together support the development of Enhanced Geothermal Systems (EGS) in Indonesia. With great potential to provide clean energy and accelerate the shift towards renewable energy, EGS could be the answer to our future energy needs. However, to overcome the technical and regulatory challenges, collaboration from all parties is required. Take part in this effort and help realize a greener and more sustainable future for Indonesia!

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