Indonesia's Geothermal Potential: A Legal Review

Indonesia’s geothermal resources are among the largest in the world, with 299 geothermal locations and a total potential of 28,807 MW, or around 40 percent of the total geothermal resources worldwide, according to a September 2014 press release from Indonesia’s Directorate General of Geothermal. In order to utilize this enormous energy potential, the Government of Indonesia (the “GOI”) has intensified its efforts to encourage geothermal power development. Some background to the regulatory climate will put these developments in perspective.