Presently Indonesia only utilizes 4% of its geothermal reserves. Indonesia has the largest geothermal reserves in the world, but its has not been development to its full capacity.  Whereas electricity from geothermal is far cheaper than from fossil fuel. Director-General of New and Renewable Energy and Energy Conservation of The Ministry of Energy and Mineral Resources Luluk Sumiarso said Indonesia has abundant geothermal resources, spread along the belt of active volcanoes from Sumatra, Java, Bali, Nusa Tenggara, North Sulawesi, and Maluku and is the largest geothermal potential in the world. 

"The utilization of geothermal energy for power generation, is still very small compared to the potential resources and reserves that exist, which is only 1189 MW or 4% of it existing potential," Lulu said, quoted from the site of Ministry of Energy and Mineral Resources, Wednesday (30/03/2011). 

Of the many alternative energy sources, geothermal is an alternative energy source with huge potential to be developed.  Up till now there are 276 known geothermal potential locations in all parts of Indonesia with a total potential of 29,038 MW or 40% of the world's geothermal potential. But Indonesia has only utilized 4% (1196) of it for electricity generation.  

Common issues of geothermal development consist of two things: (1) the use of forest areas and (2) the number of permits that are required after IUP (recommendation of Governor, the technical recommendations from Forestry, permit approval for land use, groundwater use permits, approval of environmental impact, etc.).The total geothermal potential in the forest area reached 12,069 MW (42.3% of the total potential of Indonesia). Geothermal energy is a driving force for the development of alternative energy in Indonesia."The number of good programs should be coordinate and synergy accordingly." said Lulu.