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Geothermal Development Accelerates as Indonesia Harnesses Volcanic Resources

Geothermal Development Accelerates as Indonesia Harnesses Volcanic Resources

Indonesia
Market Insight

Indonesia is intensifying development of its world-leading geothermal resources, with installed capacity projected to reach 3.7 gigawatts by the end of 2025, according to ProSpace Indonesia’s Renewable Energy Outlook. This represents a 32% increase from 2023 levels, cementing Indonesia’s position as the second-largest geothermal power producer globally.
Fifteen new geothermal projects are currently under development, with combined investment values exceeding $4.8 billion. The government’s Geothermal Drilling Fund has proven effective in mitigating exploration risks, funding 23 successful exploratory wells since its establishment.
“Geothermal represents Indonesia’s unique competitive advantage in the renewable energy transition,” explains Hendra Nugraha, Geothermal Energy Specialist at ProSpace. “It provides consistent baseload power that complements intermittent solar and wind resources while utilizing Indonesia’s natural volcanic geography.”
Technology advances have reduced development costs by approximately 15% since 2020, while improved drilling techniques have increased success rates from 72% to 83% over the same period. Binary cycle plants, which can generate electricity from lower-temperature resources, are expanding the viable resource base.
Environmental impact assessments have become more sophisticated, with particular attention to conserving forest areas around geothermal sites. Carbon credit mechanisms increasingly support project economics, with certified emissions reductions valued at approximately $28 million in 2024.
Progress remains slower than targeted due to complex permitting processes and challenging terrain at many sites, issues being addressed through regulatory reforms.
For geothermal sector analysis: Phone: +62 21 5799 8989 Email: info@prospaceindonesia.com Follow @prospace.indonesia on Instagram for updates

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Climate Finance Initiatives Creating Green Investment Opportunities Across Africa

Africa
Business News

Innovative climate finance mechanisms are creating substantial green investment opportunities across Africa, mobilizing capital for projects that combine climate impact with commercial returns. These initiatives are channelling unprecedented funding into renewable energy, sustainable infrastructure, and climate-smart agriculture.
Key developments include specialized green bond programs designed for African issuers; blended finance vehicles combining concessional and commercial capital; results-based financing tied to verified carbon reductions; and climate-focused venture capital targeting early-stage innovations.
These mechanisms have mobilized over $8.5 billion in climate-aligned investments during 2024, with particularly strong flows into distributed solar, green transportation infrastructure, and resilient agricultural systems.
“Africa’s climate finance landscape has evolved significantly beyond grant funding to create genuine investment opportunities with attractive returns,” explains Dr. Kofi Mensah, Sustainable Finance Director at ProSpace Indonesia. “The most successful approaches combine climate impact with clear commercial models addressing Africa’s development priorities.”
ProSpace Indonesia provides specialized climate finance advisory services, including opportunity assessment, mechanism selection, and implementation planning.
For information on African climate finance opportunities, contact ProSpace Indonesia at +62 877 8887 7678 or email info@prospaceindonesia.com. Follow @prospace.indonesia on Instagram for insights on Africa’s evolving sustainable finance landscape.

Fintech Disruption Reshapes Indonesian Banking Landscape

Indonesia
Market Insight

Traditional banking institutions in Indonesia are facing unprecedented competition as fintech adoption rates surge across the country. A new study by ProSpace Indonesia reveals that 47% of Indonesian banking customers now use at least one fintech service regularly, up from 31% in 2023.
Digital payments lead the disruption, with peer-to-peer lending, investment platforms, and neobanks gaining significant market share. The report indicates that traditional banks could lose up to 28% of their revenue streams to fintech competitors by 2027 if they fail to adapt.
“Banks are no longer competing with other banks—they’re competing with user experience and technological innovation,” explains Fitra Widjaja, Banking Sector Analyst at ProSpace. “Institutions that embrace open banking and collaborative models with fintech players are maintaining their competitive edge.”
The central bank’s regulatory sandbox approach has enabled controlled innovation while maintaining financial stability. Meanwhile, recent regulatory changes have opened doors for virtual banking licenses, with five new digital-only banks launched in the past year.
Traditional banks are responding with digital transformation initiatives, with the top five banks allocating an average of 15% of operational budgets to technology investments this year—double the amount from 2023.
The ultimate winners may be Indonesian consumers, who now enjoy more financial options, lower fees, and improved access to credit and investment opportunities.
For more information: Phone: +62 21 5799 8989 Email: info@prospaceindonesia.com Follow @prospace.indonesia on Instagram for updates