Overall geothermal investment in Indonesia to reach $1.7bn in 2018
Drilling rig on site of Baturaden project, Central Java (source: PT SAE)
Alexander Richter
3 May 2018
The renewable energy arm of Indonesia's Ministry for Energy and Mineral Resources estimates an overall investment into geothermal project development in Indonesia of about $1.7 billion for development of 25 geothermal projects around the country.
Latest estimates expect geothermal investment in Indonesia to reach US $ 1.71 billion or equivalent to Rp 22.23 trillion in 2018. This figure represents about 80% of projected investment in the renewable energy field as a whole.
Such an investment is needed to finance the geothermal business in 25 geothermal working areas (WKP) scattered throughout Indonesia.
“Investment recorded from 25 companies (WKP) reached US $ 1.71 billion for 2018,” said Director General EBTKE, Ministry of Energy and Mineral Resources, Rida Mulyana, in March 2018.
Rida added that the government will continue to monitor the investment commitments already submitted by business actors. According to him, in 2018 the government is more ambitious than last year due to an increase in targeted commitments.
From the projected investment of that size, PT. Pertamina (Persero) through its subsidiary, PT Pertamina Geothermal Energy (PGE) is still the largest investment company, reaching US $400 million. Followed by PT Supreme Energy for the three WKP with a total investment of US $362 million. Then Star Energy and Medco each prepared an investment of US $200 million.
The government continues to boost electricity by utilizing geothermal heat. Indonesia’s geothermal potential is enormous, about 40 percent of the world’s geothermal potential. Unfortunately, that potential has not been well developed or only 6%.
The government has set a target of 23% for renewable energy in the country’s energy mix and some of it must be contributed by geothermal energy. The acceleration of geothermal energy exploitation is also related to the commitment of the President of the Republic of Indonesia to COP 21. The Government has ratified the Paris Agreement through Law Number 16 Year 2016 which mandates the decrease of GHG emission (NDC) in 2030 by 29%. Development of geothermal energy for electrical energy is one manifestation of the commitment because heat is believed to be green energy and clean.
This is Projection of Indonesian Heat Industry Investment in 2018
- PT Sabang Geothermal Energy, Jaboi US $17.76 million
- PT Sorik Marapi Geothermal Power, Sorik US $280.17 million
- PT Sokoria Geothermal Indonesia, Sokoria US $56.7 million
- PT Sejahtera Alam Energi, Baturaden US $54, 38 million
- PT Spring Energy Sentosa, Guci US $19.63 million
- PT Sintesa Banten Geothermal, Lake Banten Caldera US $34.22 million
- PT Medco Cahaya Geothermal, Blawan-Ijen US $2.66 million
- PT Bakrie Dharmakarya Energy, Lake Ngebel US $21.30 million
- PT Kopjasa Teknosa Teknosa, Cibuni US $1.08 million
- PT PLN, Mataloko US $4.48 million
- PT PLN Ulumbu US $4.93 million
- PT PLN, Atedel US $1.51 million
- PT PLN, Songa Wayaua US $1.48 million
- PT PLN, Gunung Tangkuban Perahu US $3.23 million
- PT PLN Tulehu US $3.88 million
- PT Geo Dipa Energy, Umbil Telomoyo Temple US $1.04 million
- PT Geo Dipa Energi, Arjuno Welirang US $1, 13
- PT Geo Dipa Energi, Dieng US $12.41 million
- PT Geo Dipa Energi, Patuha US $10.27 million
- PT Hitay Daya Energy, Gunung Talang Bukit Kili US $9.54 million
- PT Enel Green Power, Wai Ratai US $6.48 million
- PT Star Energy, US $200 million
- PT PGE US $400 million
- PT Medco Energy, Sarulla US $200 million
- PT Supreme Energy (3 WKP) US $362 million
Source: Pabum News
