The objectives of this study are to perform the exergy analysis and ambient temperature optimization of the Kamojang geothermal power plant by employing Engineering Equation Solver (EES). The geothermal capacity is 55 MW and the field is vapor-dominated reservoir with temperature 245 °C. In the initial state temperature, pressure and mass flow data are collected from the plant operation. The study results show that system has overall efficiency of 35.86% which means that only 111,138.92 kW electrical power can be extracted from 309,000 kW thermal power being produced by 10 production wells of Kamojang. This low efficiency is due to irreversibility associated with different processes and components in the system. The largest irreversibility occurs in condenser due to which 53% of total energy is disposed into the environment. Ambient temperature at Kamojang varies from 17 to 20 °C. The effect of this variation in temperature is also investigated and it is observed that higher temperature does not have any significant impact on system efficiency.