Encouraging geothermal development, Indonesia targets new supporting regulations in 2020

Drilling Rig on site of the Muara Laboh geothermal project, Indonesia (source: Sumitomo Corp.)
Alexander Richter 6 Apr 2020

New regulation is being worked on in Indonesia that would see the government taking on some drilling to de-risk projects to help increase bankability and reliability of geothermal development.

The Ministry of Energy and Mineral Resources (ESDM) targets a regulation on government drilling or exploration by the government to be completed this year.

Director of Geothermal at the Ministry of Energy and Mineral Resources Ida Nuryatin Finahari explained, at this time it was still discussing the provisions.

“Around the exploration by the government is currently being discussed by the Directorate General of New Renewable Energy and Energy Conservation (EBTKE) and the Geological Agency. (The target) is this year,” Ida told local news this week.

Ida continued, there are several obstacles in the effort to develop geothermal energy such as high exploration risks and project economic problems. Whereas the geothermal potential in Indonesia is estimated at around 24,000 MW while only around 2,100 MW or around 8.9% is utilized.

According to her, the government’s step in conducting exploration is indeed a demand by geothermal industry players. “Exploration by the government can increase bankability and reliability of the Geothermal Working Area (WKP) before it is offered to business entities,” explained Ida.

Source: Kontan