Saving Halmahera Island in Indonesia from Israeli investment – Middle East Monitor

Indonesia’s pursuit of renewable energy is colliding with complex geopolitical and environmental concerns. On January 8, 2026, the Ministry of Energy and Mineral Resources awarded the Telaga Ranu geothermal working area to PT Ormat Geothermal Indonesia as part of a national effort to reach Net Zero Emission by 2060. This decision, however, raises questions about Indonesia’s foreign policy commitments and the ecological future of Halmahera Island.

A Geothermal Project with Political Implications

The concession awarded to PT Ormat Geothermal Indonesia is not simply an energy project. PT Ormat Geothermal Indonesia is controlled by Ormat Technologies, a firm with deep roots in Israeli engineering, manufacturing, and capital networks. This connection introduces a political dimension to the project, given Indonesia’s long-standing lack of diplomatic relations with Israel and consistent support for Palestinian self-determination.

Did You Know? Indonesia has maintained no diplomatic relations with Israel and consistently voices support for Palestinian self determination.

Deepening commercial ties with companies linked to Israel creates a visible gap between Indonesia’s foreign policy messaging and its economic behavior. Such divergence could weaken Indonesia’s credibility on the international stage and complicate its moral positioning.

Environmental Concerns on Halmahera Island

Halmahera Island is already experiencing significant industrial pressure. Large nickel complexes, primarily backed by China, have transformed parts of the island into processing hubs for the electric vehicle battery supply chain. Investors from Japan and South Korea have further contributed to this industrial expansion, leading to accelerated forest loss, rising stress on coastal waters, and disruption to local communities.

Previous Issues with Ormat Technologies

The geothermal concession adds another long-term industrial footprint to an ecosystem already under strain. Projects linked to Ormat Technologies elsewhere in Indonesia have reportedly resulted in environmental damage and disruption to local communities. At the Blawan Ijen Geothermal Power Plant, waste from a production well reportedly contaminated water sources relied upon by residents in Watu Capil, Kebon Jeruk, and Margahayu, causing foul-tasting water and skin irritation.

Similarly, on Buru Island, exploration activity reportedly displaced Indigenous residents due to fear and uncertainty, with minimal explanation provided about the project’s risks. These incidents highlight the potential for geothermal expansion to outpace adequate oversight.

Expert Insight: The situation on Halmahera underscores the complex trade-offs inherent in pursuing renewable energy development. While reducing carbon emissions is a critical goal, it cannot come at the expense of environmental protection and community well-being.

What Could Happen Next?

The Indonesian government could face increasing scrutiny over its decision to award the concession. Observers have already questioned the speed of the Telaga Ranu tender and the limited opportunity for public consultation. A possible next step could involve increased pressure for greater transparency and community engagement in future geothermal projects.

Alternatively, the government could proceed with the project as planned, prioritizing the Net Zero Emission 2060 target. This could lead to further industrial development on Halmahera, potentially exacerbating existing environmental pressures and raising concerns about Indonesia’s foreign policy consistency. It is also possible that the government could attempt to mitigate the political risks by emphasizing the economic benefits of the project and reaffirming its support for Palestinian self-determination.

Frequently Asked Questions

What was awarded on January 8, 2026?

The Telaga Ranu geothermal working area was awarded to PT Ormat Geothermal Indonesia by the Ministry of Energy and Mineral Resources.

What is the connection between PT Ormat Geothermal Indonesia and Israel?

PT Ormat Geothermal Indonesia is controlled by Ormat Technologies, a firm built on Israeli engineering, manufacturing, and capital networks.

What environmental concerns exist regarding geothermal projects linked to Ormat Technologies?

Projects linked to Ormat Technologies have reportedly damaged ecosystems and disrupted local communities, including water contamination at the Blawan Ijen Geothermal Power Plant and displacement of Indigenous residents on Buru Island.

As Indonesia balances its energy needs with its geopolitical stance and environmental responsibilities, how might this situation shape its future development strategies?