News

International financial agencies confirm their support of geothermal development in Indonesia

Ulubelu geothermal area, Lampung, Indonesia (source: Pertamina Geothermal Energy)
Alexander Richter Alexander Richter 16 Oct 2018

The World Bank, Asian Development Bank and other international financial agencies have confirmed their support for geothermal development in Indonesia.

As reported by local news in Indonesia, several international financial agencies, among them the Asian Development Bank (ADB) confirm their support for the development of geothermal power project in Indonesia.

In a statement this week from Indonesia, Bambang Susantono, Vice President of Knowledge Management and Sustainable Development, says the World Bank is dedicated to Geothermal Investment and The Future of Renewable Energy in Indonesia with green energy is strongly recommended by the World Bank.

Indonesia holds known geothermal reserves equivalent to 14,473 megawatts of electricity found in 265 locations or the second largest in the world.

“The big potential has to be processed into energy today for the future,” Bambang Susantono said at the annual meeting of the International Monetary Fund and the World Bank in Nusa Duan.

The government has set a target for the use of renewable energy that would make up 23 percent of the country`s energy consumption in 2025.

Meanwhile, Riki Ibrahim, Chief Executive of PT Geo Dipa, a state company operating in geothermal power development, said a number of state companies including PT Geo Dipa, PT PLN and PT Pertamina, have developed geothermal energy to generate electricity.

PT Geo Dipa a state company under the Finance Ministry to operate in the development of geothermal energy to produce electricity.

“Geo Dipa , which cooperates with PT SMI and PT PII, is offered financial aid to build a number of green energy projects by a number of Development Banks,” Riki said.

The cost of the projects, located in the Dieng Upland, Sikidang-Sileri, Chandradimuka, Banjarnegara/Wonosobo, in Central Java, and Patuha, Ciwidey, Bandung Selatan, in West Java, is around US$529 million, to be finished in five years.

GeoDipa will reduce emission of CO2 gas by at least 2 million tons in 2023 and 6 million tons in 2035.

Indonesia has commitment to coping with the impact of climate change as outlined in the Law No.16 of 2016 on Paris agreement on reducing pollution.

Source: Antara news