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The Indonesian energy policy is to maximize the renewable energy use, minimize the use of oil and secure the balance by domestic gas and coal.The priority of renewable energy development is in geothermal, hydropower, biomass energy, solar energy and ocean energy.Recently government has just launched the second 10000 MW acceleration power project.Among this, 4000 MW is geothermal projects, which are located in 43 locations all over the country.This is part of the implementation of geothermal development roadmap, which has projected the geothermal capacity of 15000 MW by 2025, and 25000 MW by 2050 out of about 29000 MWe geothermal resources potential, as has been identified in 276 locations.According to the Indonesian Geothermal Law the district government carries out the tender for concession award.Then the Power Purchase Agreement is made with the off taker, which is the Indonesia state electricity company PLN.The regulation sets the price cap of 9.7 cents per kWh for the scale bigger than 10 MW.This paper describes the present status of development, the regulatory and policy, the process of concession award, the development roadmap, and the progress and challenges of geothermal development in Indonesia.