Auction for early stage geothermal development areas in West Sumatra, Indonesia

Taman Hutan Raya Bung Hatta, Solok, West Sumatra, Indonesia (source: flickr/ Daniel Wilder, creative commons)
Alexander Richter 14 Nov 2018

Indonesia's Ministry of Energy and Mineral Resources through EBTKE is launching an auction for geothermal preliminary and exploration survey areas (WPSPE) in Bonjol, Pasaman Regency in West Sumatra Province.

The Ministry of Energy and Mineral Resources (ESDM) through the Directorate General of New and Renewable Energy and Energy Concertation (EBTKE) again auctions geothermal Preliminary and Exploration (WPSPE) Survey Areas.

The WPSPE offered is WPSPE Bonjol, located in Pasaman Regency, West Sumatra Province. The potential capacity is estimated at 200 MW with a land area of 7,441 hectares.

ESDM Director General of Geothermal Energy, Ministry of Energy and Mineral Resources Ida Nuryatin Finahari is optimistic that the offered block will be sought by investors such as WPSPE which was auctioned before. Evidently as many as eight WPSPE that have been auctioned so far, have been sold in full.

“There must be someone who is interested. The one who has shown interest is there. Wait for another month, there is only a list of proposals,” said Ida, recently.

Ida said the implementation of the offer will last for 1 month. The auction document must be submitted no later than the interested business entity on November 21, 2018.

The business entity designated as the winner will conduct a Pre-Transaction Agreement (PTA) with PT PLN (Persero) after exploration is complete and a Geothermal Permit is issued. The reference price of electricity in the PTA referred to follows the provisions of the legislation.