To successfully meet the increased Indonesian electricity demand, phase out oil and increase electrification, the country plans to add 35 GW of electrical generation capacity by 2019. As a country with the third highest reserves of geothermal energy in the world, geothermal power generation is an option to reduce its CO2 emissions and increase electrification. Geothermal energy is a viable resource for Indonesia, because of abundant supply due to its location, relatively low CO2 emissions, and low operational cost. However, geothermal development in Indonesia has been slow. One reason for this slow growth is Indonesia is still facing many challenges in terms of poor regulatory structure, technology difficulties with respect to sub-surface, and unclear financial structure. To understand the key barriers of geothermal development and the role of small-scale geothermal power plants in escalating the energy capacity in Indonesia, the author presents the following report that is a compilation and analysis of literature reviews and company’s data.