Jakarta, March 5, 2024 – The development of Geothermal Power Plants (PLTP) in Indonesia, although promoted as part of the energy transition, has social and economic impacts on local communities. Bhima Yudhistira, Executive Director of CELIOS, emphasized, “Capital-intensive geothermal projects tend not to generate significant multiplier effects for local economies. On the contrary, local communities often view geothermal development as an obstacle to productivity in agriculture and fisheries.” A CELIOS study projects that farmers’ incomes could decline by as much as IDR 470 billion, with employment falling by tens of thousands of jobs at several sites in East Nusa Tenggara.
Beyond the economic effects, the ecological impacts are also significant. Wishnu Try Utomo, Director of Mining Advocacy at CELIOS, stated, “Ecological restoration must be viewed as an integral part of developing clean and renewable energy systems. Energy provision must not be dominated by corporate interests; communities must be placed in the role of both managing their resources and benefiting from them.” Gas poisoning incidents in Mandailing Natal and disruptions to livelihoods in Dieng underscore the safety risks faced by communities living near PLTPs.
Affected residents and environmental advocates stress the need for an ecocentric and equitable approach. Agung Raihan from Dieng recommended, “Energy extraction projects should take an ecocentric approach, considering not only what is valuable underground but also the living things above ground.” Fanny Tri Jambore Christanto, Head of the Campaign Division at Walhi Nasional, added, “Geothermal energy systems also have the potential to exacerbate agrarian conflicts and increase the threat of criminalization facing the people, in addition to the risks of disasters and ecological pollution.”
The development of Geothermal Power Plants (PLTP) in Indonesia, while promoted as part of the energy transition, has social and economic impacts on local communities. Bhima Yudhistira, Executive Director of CELIOS, emphasized, “Capital-intensive geothermal projects tend not to generate significant multiplier effects for local economies. On the contrary, local communities often view geothermal development as an obstacle to productivity in agriculture and fisheries.” CELIOS projections indicate farmer income losses of up to IDR 470 billion and a decline of tens of thousands of jobs at several sites in East Nusa Tenggara.
Beyond the economic effects, ecological impacts are also significant. Wishnu Try Utomo, Director of Mining Advocacy at CELIOS, stated, “Ecological restoration must be considered an integral part of developing clean and renewable energy systems. Energy procurement must not be dominated by corporate interests and must place communities in the role of both managing their resources and benefiting from them.” Gas poisoning incidents in Mandailing Natal and disruptions to livelihoods in Dieng highlight the risks to communities near PLTPs.
Local residents and environmental advocates stress the need for an ecocentric and equitable approach. Agung Raihan from Dieng advised, “Energy extraction projects should take an ecocentric approach, considering not only what lies underground but also what lives above it.” Fanny Tri Jambore Christanto, Head of the Campaign Division at Walhi Nasional, added, “Geothermal energy systems also have the potential to exacerbate agrarian conflicts and increase the criminalization of local communities, in addition to the risks of disasters and ecological pollution.”
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