Indonesia government led geothermal drilling campaign to only focus on two areas in 2021
Government-led drilling campaign to be carried out only in the two geothermal fields of Nagekeo, East Nusa Tenggara (NTT) and Cisolok, Sukabumi in 2021. This leaves out the initially planned third project of Bittuang, South Sulawesi.
As reported from Jakarta yesterday, the Geological Agency of the Ministry of Energy and Mineral Resources (ESDM) of Indonesia has announced that geothermal drilling by the government will only be carried out in two locations instead of three as previously announced. We reported on it in November 2020.
Eko Budi Lelono, Head of the Geological Agency of the Ministry of Energy and Mineral Resources, revealed that geothermal drilling will be only be carried out in the two locations of Nagekeo, East Nusa Tenggara (NTT) and Cisolok, Sukabumi. Initially it was planned to also drill in Bittuang, South Sulawesi.
“In evaluating the three locations, the potential for Bittuang was considered lowest of the three. There is hope that Bittuang can be added in a next stage, yet for now this helps realise some budget savings,” Budi said in a virtual press conference, yesterday.
Meanwhile, this exploration will be the first exploration undertaken by the government. Budi explained that this step will later be to reduce the risk of exploration costs that the developer must bear.
In addition to drilling in two locations, Budi confirmed that his party also conducted geothermal surveys in 6 locations, namely Nagekeo, Ciamis, Pinamula, Panulisan, Sulili and Aloe Calong. Budi added, from the current evaluation, it was recorded that resources reached 23,892.5 MWe with an installed capacity of 2,130.7 MWe spread over 355 locations.
Previously, the Ministry of Energy and Mineral Resources targeted that the auction process for the Geothermal Working Area (WKP) would only begin in 2023.
The Director of Geothermal Energy at the Ministry of Energy and Mineral Resources, Ida Nuryatin Finahari, revealed that the postponement of this schedule was due to the government planning to conduct exploration first.
“Because (the government) already has a geothermal exploration program, it will be carried out by the Geological Agency, so in 2023 it will be auctioned after drilling,” said Ida, earlier this month.
Meanwhile, the Director General of New, Renewable Energy and Energy Conservation (EBTKE) Dadan Kusdiana revealed that exploration activities by the Geological Agency will use the APBN budget of around Rp. 420 billion for three locations, before it is confirmed that exploration will only be carried out in two locations.
Dadan added, the exploration by the Geological Agency is targeted to be completed this year. Although targeting WKP auction in 2023, if the exploration results are completed on time, the Ministry of Energy and Mineral Resources hopes that the auction process for WKP results from exploration can be carried out in 2022.
Dadan hopes that in the next year the exploration process by the government can be carried out again. “Maybe next year it could be three or four depending on this year’s results and government funds,” added Dadan.