Jakarta. State-run Pertamina Geothermal Energy (IDX: PGEO) is set to begin drilling its first exploration wells at the Ulubelu geothermal project in Gunung Tiga, Lampung, a significant step in Indonesia’s clean energy transition.

The company has secured all necessary permits to start exploration activities, thanks to what it describes as strong backing from the government and key ministries.

"With full support from the government, the licensing process has been expedited. We are now ready to begin drilling for the Ulubelu project," said PGEO Director of Exploration and Development Edwil Suzandi at the Energi Mineral Festival in Jakarta on Wednesday.

The Ulubelu geothermal project is part of Indonesia’s strategy to reduce its reliance on fossil fuels and achieve its net-zero emissions target by 2060.

The Ulubelu site lies within Indonesia’s seismically active Ring of Fire, which Edwil said gives the company confidence in the site’s geothermal potential. However, he said the size and viability of the resource must still be verified.

Following a two-year feasibility study, PGEO is aiming to streamline the exploration timeline. The company plans to drill at least three wells during the initial phase—two production wells and one reinjection well, which is essential for maintaining geothermal sustainability.

“Geothermal is a form of green energy. Whatever we take from the earth, we return to the earth. It’s a closed-loop system where nothing is permanently released to the surface,” Edwil explained.

The company will conduct long-term production tests over one to two months to assess the wells’ stability and output capacity. These tests will measure temperature, pressure, and rock lithology data, which will then be analyzed using machine learning and reservoir simulation technologies.

“These analyses will help us determine the actual geothermal potential and the number of wells needed to meet the targeted power plant capacity,” said Edwil.

PGEO is also evaluating the economic viability of the project, aiming to reach a financial investment decision (FID) by the third year of development.

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