Our country, situated on the Pacific Ring of Fire, holds one of the world’s largest geothermal potentials. In 2026, this momentum will be further felt when two large-scale projects—Salak Geothermal Power Plant Unit 7 And Wayang Windu Unit 3—are expected to be ready for Commercial Operation Date (COD). These two projects are more than just additional electricity capacity: they symbolize Indonesia’s energy transformation toward a cleaner, more reliable, and more renewable future.
However, building a geothermal power plant is no easy task. With risks associated with deep drilling, reservoir pressure, potential corrosive vapors, and environmental risks, projects like Salak and Wayang Windu require meticulous risk management. Without proper protection, even a small hiccup can become a major financial and technical disaster.
Here it isL&G Insurance BrokerWe are here as a strategic partner. With experience in large energy projects, we can help you design an insurance program that covers construction risks, third-party liability, and technical drilling risks. With comprehensive protection, your geothermal project can proceed more smoothly, safely, and be better prepared for COD 2026.
Overview of the Salak & Wayang Windu Geothermal Projects 2026
1. Salak Geothermal Project – A Long-Awaited Capacity Increase
The Salak area is known as one of the most productive geothermal fields in Indonesia. With the planned addition of a new unit (Unit 7), generating capacity is expected to increase significantly to support the electricity needs of Java and Bali. The project involves further exploration, drilling new wells, and installation of a power plant which requires high precision. COD is targeted for completion in 2026 as part of the national renewable energy acceleration roadmap.
2. Wayang Windu Unit 3 Project – Expansion of the Most Successful Geothermal Field
Wayang Windu, managed by Star Energy, has become a benchmark for geothermal development in Indonesia. The addition of Unit 3 in 2026 will strengthen Wayang Windu’s position as one of the most stable and efficient geothermal producers. The project includes drilling production and injection wells, construction of surface installations (steam gathering system), as well as integration with existing units so that the performance reservoir remains optimal.
3. Relevance of the Two Projects to the National Energy Target
The accelerated COD (Cost-Off) of these two projects has strategic implications. It not only increases the supply of renewable electricity but also helps the government achieve its 23% clean energy mix target. Furthermore, the success of these projects will serve as a strong signal to global investors that Indonesia’s geothermal sector is safe, viable, and promising.
Salak & Wayang Windu Geothermal Project – Ready for COD in 2026
Two geothermal projects that are currently in the spotlight are Snakefruit And Wayang Windu, two strategic assets in green energy development in Indonesia. Both projects are currently in the accelerated construction phase and are targeted to reach Commercial Operation Date (COD) in 2026 This achievement marks a significant milestone in the government and PLN’s efforts to increase the share of new and renewable energy (EBT) in the national energy mix.
3.1 Salak Geothermal Expansion
The Salak Project is one of the largest geothermal fields in Indonesia. Its latest developments focus on increasing electricity production capacity through:
- Optimization of existing wells to increase efficiency.
- Drilling a new well designed to increase the supply of high-quality steam.
- Modernization of steam gathering facilities so that the system is more stable and sustainable.
With cutting-edge technology and support from geothermal experts, this project is projected to provide significant additional capacity to support Java–Bali’s electricity needs.
3.2 Wayang Windu Geothermal Optimization Project
Wayang Windu is known as a high-temperature geothermal field with significant potential. The 2024–2026 optimization project emphasizes:
- Upgrade turbine and plant equipment to increase electrical output.
- Addition of injection wells to maintain the sustainability of the reservoir.
- Implementation of a digital monitoring system which maximizes operational efficiency.
These steps enable Wayang Windu to maintain its top performance while providing additional capacity to support the national renewable energy target.
3.3 ImpactStrategic COD 2026
If these two projects successfully reach COD on time, the impact for Indonesia will be enormous:
- Improving national electricity reliability especially in Java–Bali.
- Reducing CO₂ emissions by replacing fossil-based energy.
- Attracting global investors, because it shows Indonesia’s commitment to the energy transition.
- Boosting the local economy through labor absorption and supply chain industry.
Why is Construction & Operational Insurance Coverage So Important?
Geothermal projects like Salak and Wayang Windu are valuable investments.hundreds of millions of dollars, with technical risks that are far more complex than other power plant projects. Therefore, insurance coverage is not just a formality, but strategic components to maintain project continuity and financial stability of stakeholders.
4.1 High Risks During Construction Phase
The geothermal construction phase has unique risk characteristics:
- Geothermal well blowout due to unstable reservoir pressure.
- Drilling rig damage which is of very high value.
- Ground movement & subsidence which can damage the installation foundation.
- Extreme weather and remote area access which increases the potential for logistical losses.
Without insurance protection such asConstruction/Erection All Risks (CAR/EAR) And Third Party Liability (TPL), losses can have fatal consequences, disrupt COD schedules and incur unexpected costs.
4.2 Operational Risks After COD
As the plant begins operating, the challenges do not diminish:
- Turbine & generator damage due to high pressure and temperature.
- Disturbance in the steam transmission line which can stop electricity production.
- Erosion & corrosion which accelerates equipment wear.
- Fire risk at the power plant facility.
Insurance such as Property All Risks (PAR) and Machinery Breakdown (MB) become a primary need to maintain cash flow and continuity of operations.
4.3 ObligationsContractualfrom Lenders & Stakeholders
Most geothermal projects are financed by:
- Consortium bank
- Investor international
- Green financing institutions
These parties require a comprehensive insurance program,as a form of financial risk mitigation and investment protection. In other words, a project cannot proceed or receive funding without proper insurance.
4.4 The Role of Insurance Brokers is Very ImportantCrucial
Geothermal projects require brokers who:
- Geothermal technical understanding
- Able to translate technical risks into appropriate policy wording
- Can negotiate the best rate with the insurer
- Manage large claims quickly and scalably
This is the role that L&G Insurance Broker offers as a strategic partner (CTA will be put back later in the closing).
How Does L&G Insurance Broker Support Geothermal Projects?
Geothermal projects like Salak and Wayang Windu require not only cutting-edge technology but also precisely designed risk protection. In the geothermal world, even a small error can trigger billions of rupiah in losses, and this is where L&G Insurance Broker plays a strategic role, understanding the complexities of this industry.
5.1 Technical Expertise in the Energy & Geothermal Sector
L&G doesn’t just act as a policy broker. We have a team of experts accustomed to handling major energy risks, including:
- Drilling and workover
- Power plant construction project
- Steam transmission facilities
- High-tech turbines, generators and electrical systems
With experience handling various oil and gas, renewable energy, and heavy industrial projects, L&G is able to prepare risk assessments that comply with international standards.
5.2 Preparing an Appropriate and Effective Insurance Program
Each geothermal project has unique characteristics—reservoir conditions, drilling technology, topography, and production capacity. Therefore, L&G always creates tailor-made insurance programs.covers:
- Construction All Risks / Erection All Risks
- Third Party Liability
- Delay in Start-Up (DSU/ALOP)
- Property All Risks
- Machinery Breakdown
- Business Interruption
- Liability & environmental risks
We ensure that every policy wording covers the real risks a geothermal project may experience, not just general standards.
5.3 Premium & Capacity Negotiation with the Best Insurance Companies
Geothermal projects require significant capacity and often involve international reinsurance. L&G has a strong network in:
- Leading national insurance company
- Highly rated global reinsurer
- Underwriter specializing in construction, energy, and power generation
With a strong reputation and portfolio, L&G is able to negotiate:
- Best premium
- More complete warranty extension
- Large capacity limit
- More competitive deductibles
5.4 Large Loss Handling
In the event of an incident, claims handling determines the fate of the project. L&G has experience in:
- Manage hundreds of claimsbillion
- Bridging communication between contractors, insurers, and loss adjusters
- Ensure claims are processed quickly and according to coverage
- Protecting the client’s position from potential rejection
With the support of legal and technical teams, clients do not need to worry about facing a complicated claims process.
5.5 Supporting Indonesia’s Commitment to Clean Energy
As a broker committed to the renewable energy sector, L&G supports the acceleration of:
- Transition energy national
- Increasing renewable energy-based electricity capacity
- Reducing carbon emissions
- Sustainable green investment
Geothermal projects are the future of Indonesia’s energy, and L&G is ready to be a key part of that journey.
Conclusion
Acceleration of geothermal projects such asSnakefruit And Wayang Windumarks a crucial chapter in Indonesia’s energy transition journey towards 2026. With geothermal potential among the world’s largest, the success of these projects is not only about meeting national electricity needs, but also strengthening energy security, reducing emissions, and opening up significant investment opportunities. However, despite this potential, geothermal projects remain high risk—from drilling failures, unforeseen geological risks, construction disruptions, to financial losses due to operational delays. Without proper safeguards, losses could reach hundreds of billions to trillions of rupiah.
This is where the role of a professional insurance broker becomes very important.L&G Insurance BrokerWe are here to ensure every stage of a project, from construction to operation, is protected with guarantees best suited to the characteristics of the geothermal industry. With extensive experience handling large-scale energy projects, strong negotiation capabilities, and proven effective claims management, L&G is ready to be your strategic partner in navigating the complex risks of the geothermal sector.
If you want to ensure your geothermal project is safe, efficient and fully protected,contact L&G Insurance Broker nowIt’s time to realize Indonesia’s green energy development without compromising on risks.
—
DON’T WASTE YOUR TIME AND SECURE YOUR FINANCIAL AND BUSINESS WITH THE RIGHT INSURANCE.
HOTLINE L&G 24 JAM: 0811-8507-773 (CALL – WHATSAPP – SMS)
Website: lngrisk.co.id
Email: halo@lngrisk.co.id
—
