Reykjavik Energy Invest and Pertamina Geothermal Energy have signed an agreement to develop Pertamina Geothermal Energy's geothermal areas in Indonesia.

The first step towards the agreement took place in 2005, when the governments of Iceland and Indonesia signed a memorandum of understanding to collaborate in the field of geothermal energy.

Bombang Kustono, president and director of Pertamina Geothermal Energy (PGE), said: Pertamina Geothermal Energy is a leading geothermal energy company in Asia. The contract with Reykjavik Energy Invest (REI) will enable us to accelerate our plan to increase the share of geothermal power in Indonesia.

Gudmundur Thoroddsson, CEO of REI, said: This agreement is a sign of the trust that nations in various parts of the world put in our experience and know-how in harnessing renewable energy sources. Growing the relationship with Pertamina is one of REI’s most important tasks. Indonesia possesses the world’s largest geothermal resources and it is both humbling and challenging to get the opportunity to work with Pertamina in tapping into this eco-friendly energy source.