PT Archi Indonesia Tbk, one of the largest pure-play gold producers in Indonesia and Southeast Asia, has entered the geothermal sector through a joint venture with PT Ormat Geothermal Indonesia. The entity, PT Toka Tindung Geothermal (TTG), will focus on developing a geothermal power plant with an estimated capacity of 40 MW in North Sulawesi. We previously reported on a cooperation between the two companies as early as 2021, and the permit given in June of this year with things now being made
The joint venture was announced through a disclosure to the Indonesia Stock Exchange on 13 November 2025. Archi Indonesia Corporate Secretary Hidayat Dwiputro Sulaksono said the partnership is part of the company’s strategy to diversify into renewable energy.
Development within Archi’s mining concession
The geothermal project will be located within the concession areas of Archi subsidiaries PT Meares Soputan Mining and PT Tambang Tondano Nusajaya. Archi holds a 5 percent stake in the joint venture, while Ormat holds 95 percent. Despite the smaller share, Archi states that it maintains a strategic role in guiding project development.
Hidayat confirmed that TTG received its geothermal permit on 13 June 2025. The company is now preparing early field development activities and a feasibility study ahead of the construction phase. The team plans to move to construction once technical and environmental approvals are secured.
Ormat brings global geothermal expertise
Ormat is one of the largest geothermal developers globally and has operated power plants in the United States, Kenya and the Philippines. According to Archi, Ormat’s experience in drilling, reservoir development, and plant operation is expected to support efficient project execution at Toka Tindung.
Hidayat said the collaboration is expected to support long term business sustainability for Archi and create an additional revenue stream beyond gold mining.
Part of Indonesia’s energy transition
The joint venture aligns with Indonesia’s renewable energy target of reaching a 23 percent share of new and renewable energy by 2025. Archi notes that leveraging geothermal resources within its mining site strengthens its transition toward cleaner operations and supports the wider concept of green mining.
Funding and community impact
The project will be financed through staged capital investment from both partners and may also involve external financing from institutions that support green energy development. Archi states that the geothermal facility is expected to generate economic and social benefits, including job creation, infrastructure improvements, and local capacity building in the energy sector.
Source: Pena Insight
