Indonesia’s Ministry of Energy and Mineral Resources (ESDM) has selected PT Ormat Geothermal Indonesia to develop the Ranu Lake Geothermal Working Area (WKP) in West Halmahera Regency, North Maluku.
Geothermal Project Awarded to Israeli-Linked Company
PT Ormat Geothermal Indonesia is a subsidiary of Ormat Technologies Inc., a company founded in 1965 in Yavne, Israel. Ormat initially specialized in turbine technology before expanding into geothermal power. The company is publicly listed on both the Tel Aviv Stock Exchange (since 1991) and the Modern York Stock Exchange (NYSE: ORA, since 2004).
The decision was formalized in a decree signed on Wednesday, February 12, 2026, by Eniya Listiani Dewi, Director General of Renewable Energy and Energy Conservation (EBTKE). The winning bidder is required to pay for the working area data and establish an Exploration Commitment.
According to the decree, failure to meet obligations within a specified timeframe could result in disqualification. If the winning bidder isn’t already authorized to manage the working area, it must either create a new company or modify its existing articles of association to comply.
Ormat has prior experience in Indonesia, having participated in the development of the Ijen Geothermal Power Plant in East Java, in partnership with a Medco Power subsidiary, and the Sarulla Geothermal Power Plant project in North Sumatra, alongside PT Medco Power Indonesia, INPEX Corporation, Itochu Corporation, Kyushu Electric Power, and Ormat Technologies.
Controversy Surrounds the Decision
The ESDM’s choice has faced criticism, with Bhima Yudhistira, Executive Director of the Center for Economic and Law Studies (Celios), stating the appointment could weaken Indonesia’s international moral standing. Yudhistira’s statement, made on Wednesday, February 18, 2026, cited concerns about providing profit to Israel, a country that does not recognize the independence of Palestine.
As of Wednesday, February 18, 2026, Eniya Listiani Dewi had not publicly responded to the criticism regarding PT Ormat Geothermal Indonesia’s selection.
Frequently Asked Questions
What is a Geothermal Working Area (WKP)?
A Geothermal Working Area (WKP) is an area designated for the exploration and utilization of geothermal resources, as defined by the source content.
Who is Ormat Technologies Inc.?
Ormat Technologies Inc. Is a global geothermal energy company founded in 1965 in Yavne, Israel, and is the parent company of PT Ormat Geothermal Indonesia.
What happens if PT Ormat Geothermal Indonesia fails to meet its obligations?
According to the decree, if PT Ormat Geothermal Indonesia fails to fulfill its obligations within the specified period, it will be disqualified, and the next-ranked bidder will be considered.
How might this decision impact Indonesia’s future energy landscape and international relations?
