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Government of Indonesia offers PLN the management of five geothermal working areas

Pulau Tidore Volcano, Maluku Islands, Indonesia (source: flickr/ Fabio Achilli, creative commons)
Alexander Richter Alexander Richter 8 May 2018

The Ministry of Energy and Mineral Resources in Indonesia has offered the management of five geothermal working areas to PLN with a total potential of 105 MW. The areas are WKP are Lainea (20 MW) in Southeast Sulawesi, Wapsalit in Maluku (5 MW), Sembalun (20 MW) in West Nusa Tenggara, Sumani (20 MW) in West Sumatra and Gunung Endut (40 MW) in Banten.

As reported locally, the government of Indonesia again offers five geothermal working areas (WKP) to PT PLN (Persero). The total potential power capacity of those working areas is estimated at 105 MW.

Ida Nuryatin Finahari, Director of Geothermal of the Directorate General of Renewable Energy and Energy Conservation (EBTKE) of the Ministry of Energy and Mineral Resources (ESDM), discloses the offer given to PLN since April 4, 2018. The average WKP offered is located in eastern Indonesia.

The five WKP are WKP Lainea with a capacity of 20 MW in Southeast Sulawesi. WKP Wapsalit in Maluku with capacity 5 MW. Furthermore, WKP Sembalun with a capacity of 20 MW located in West Nusa Tenggara (NTB).

“Then there WKP Sumani 20 MW in West Sumatra and WKP Gunung Endut of 40 MW in Banten,” said Ida in Jakarta, Tuesday (8/5).

According to Ida, this year the government targets to offer five WKP to be managed. However, because there is no new regulation related to the general auction of WKP, the government prioritizes the assignment to State Owned Enterprises (SOEs).

PLN had previously obtained seven WKP assignments. The government is currently evaluating the three WKP that PLN wants. “Clearly this three we just evaluate. Kan have to go back and forth his name to deliver work program is not necessarily directly okay, there is a revision, “he said.

Three WKPs being evaluated are, Ranau Lake in South Sumatera will have a capacity of 110 MW, WKP Oka Ile Ange 10 MW and Mount Sirung, East Nusa Tenggara 5 MW.

Assignment to SOEs in accordance with Article 28 Act No. 21 of 2014 on geothermal. Beleid said, the government in the exploration, exploitation and / or utilization may assign public service agency or state-owned business entity in the field of geothermal.

Ida said the process of assignment to WKP management decision now should be faster because there is available government drilling. Initial funding for data collection and potential WKP will be bailed out first by PT Sarana Multi Infrastruktur (SMI), then it will be replaced by a low interest-rate business entity.

“We want to quickly, now it is available government drilling. It is preferred for SOEs, “said Ida.

Source: Dunia Energi