Turkish company Kipaş Holding signed an agreement Friday with an Indonesian state-owned company to cooperate in geothermal energy in a step toward further cooperation with Türkiye.

Kipaş Holding, a geothermal energy-producing company, signed a confidentiality agreement with the Indonesian state-owned company Pertamina Geothermal Energy, a subsidiary of Pertamina Oil and Gas in the Turkish metropolis of Istanbul.

Indonesia's Ambassador to Türkiye Achmad Rizal Purnama witnessed the signing ceremony between Mehmet Şişman, general manager of Kipaş Holding, and Julfi Hadi, chief executive officer of Pertamina Geothermal Energy.

According to Indonesia's diplomatic mission in Ankara, the agreement marks the beginning of joint exploration and investment between the two companies in Türkiye, Indonesia and other countries.

"This cooperation would lead to the sharing of expertise, technology and resources between the two nations in promoting sustainable energy practices on a global scale," said the Indonesian Embassy.

"We are happy to have met with Pertamina Geothermal Energy and hope that the cooperation will be fruitful with an exchange of information and experience for geothermal energy sector improvement in both Türkiye and Indonesia," Şişman said after the signing of the agreement.

"We are pleased to cooperate with the Turkish side. As the fourth largest geothermal supplier, Türkiye's policy on the geothermal sector is attractive, offering feed-in-tariff which is beneficial for long-term foreign investment," Hadi said.

The Indonesian ambassador welcomed the signing, indicating renewable energy as a high-priority sector of Indonesia's mission in Türkiye.