Australian firms interested in up to $500m investment in geothermal

Australian firms interested in up to $500m investment in geothermal Indonesia Stock Exchange, Jakarta (source: flickr/ nseika, creative commons)
Francisco Rojas 21 Aug 2015

The simplification of permitting processes in Indonesia might be crucial to attract new investors for geothermal projects.

Local news from Indonesia detail that the Investment Coordinating Board (BKPM) has seen a rise in interest to develop a geothermal power plant  worth US $ 500 Million.

The head of BKPM Franky Sibarani explains that Australian investors are looking to invest in the country’s geothermal sector, following meetings with PLN, and the local government.

“We hope they can immediately apply for permits in order for BKPM to start developing the projects” Franky said in a written statement in Jakarta, Friday, August 21, 2015.

The whole licensing process will be handled by the PTSP BKPM Center thanks to reforms on permits and law. According to him, the simplification of licensing permits allows for a huge reduction in the time needed to get said permits and will be critical for attracting new investors.

Franky is optimistic saying that the geothermal sector investments can support the government’s efforts to build a program to develop 35,000 MW of new electricity projects and developing the renewable energy potential that the country has. Australian investors, apart from geothermal are also interested in the development of micro-hydro power plants and solar power projects.

Source: InfoBank News