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Manila Bulletin devider Business devider Trade & Industry devider FGen to drill in Indonesia for 440-MW geothermal project by 2026

FGen to drill in Indonesia for 440-MW geothermal project by 2026

Published Oct 31, 2025 11:50 am  |  Updated Oct 31, 2025 01:06 pm
First Gen Corp. is set to begin drilling for the 440-megawatt (MW) geothermal project in Indonesia by next year, marking its first international expansion in a bid to accelerate clean energy development in Southeast Asia.
In a statement, the Lopez family-led power producer announced that it has formalized the venture with PT DSSR Daya Mas Sakti (DSSR), a unit of Indonesian energy and infrastructure firm PT Dian Swastatika Sentosa Tbk (DSSA).
The collaboration, FGen said, aims to unlock a significant portion of Indonesia’s underdeveloped geothermal potential.
Under the agreement between FGen and DSSR, their joint venture will assess six areas, including West Java, Flores, Jambi, West Sumatra, and Central Sulawesi, to speed up Indonesia’s clean energy development.
EDC President and Chief Operating Officer Jerome Cainglet said the company looks forward to sharing its decades of geothermal expertise with its neighbor as Indonesia aims for its net-zero emissions target by 2060.
“Our joint venture with Sinar Mas will allow us to jointly explore and develop geothermal projects in Indonesia,” Cainglet said.
“We believe our target sites have a potential to generate 440 MW of clean baseload power, with exploration drilling in some of the sites planned to start by next year,” he added.
Cainglet said that the company also expects to learn from the projects and apply those insights to expand its geothermal base in the Philippines. The agreement follows the initial partnership formalized in August 2025.
Indonesia holds 40 percent of the global geothermal reserves, equal to about 40 gigawatts (GW) of energy, but has only developed about 10 percent of that capacity, FGen noted.
The partnership aims to “accelerate the development of geothermal resources that will contribute to national energy security and provide a sustainable source of clean power,” FGen stated.
DSSR is a subsidiary of energy and infrastructure firm DSSA, which has investments in mining, renewable energy (RE), technology, and chemicals.
FGen, which has a diverse energy portfolio including hydro, wind, and solar, holds about 1,189.34 MW in existing geothermal projects in the Philippines through its EDC unit.

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