Stanford Geothermal WorkshopFebruary 9-11, 2026

While Indonesia’s geothermal development has predominantly focused on electricity generation, the direct use of geothermal energy remains an underexplored opportunity with substantial socio-economic potential. Direct utilization—such as for district heating, agro-processing, aquaculture, tourism, and industrial applications—offers a practical pathway to maximize geothermal value beyond power sales. These applications can generate additional revenue streams, improve project economics, and strengthen the financial viability of geothermal investments, especially for small and medium-scale resources. This paper explores how integrating direct-use applications into geothermal project planning can create multiplier effects for local economic development and community empowerment. It examines business models and policy mechanisms that enable collaboration between developers, local enterprises, and governments to capture geothermal co-benefits. By diversifying revenue sources and extending geothermal’s value chain, direct use can enhance project feasibility, contribute to regional income generation, and expand fiscal revenues for local governments through taxes and royalties. Drawing on Indonesian case studies and global best practices, the paper highlights the importance of policy alignment, infrastructure readiness, and stakeholder coordination to unlock geothermal’s full potential as a sustainable driver of local prosperity

Topic: Direct Use