Indonesia working on five programs to achieve geothermal targets

Mount Bromo, East Java, Indonesia (source: flickr/ sara marlowe, creative commons)

Parker O'Halloran 30 May 2017

 The Indonesian Energy and Mineral Resources Ministry is focusing their efforts to boost the development of geothermal power plants to 7,200 MW by 2025 from their current 1,698.5 MW capacity. Director for Geothermal at the Directorate for New, Renewable and Energy Conservation of the energy ministry (EBTKE) Yunus Saefulhak states that Indonesia will need to develop 5,500 MW of geothermal power capacity in order to reach this goal.

Mr. Saefulhak told Rambu Energy in a statement, “This is a huge task and not easy. We hope to get support from all stakeholders including the forestry and finance ministries, regional governments and central government to provide incentives and simplify permits in order to accelerate the development of geothermal energy.”

To achieve their goal of adding 5,500 MW of geothermal energy Indonesian Energy and Mineral Resources Ministry is focusing their efforts on these five goals:

1) Auction of five geothermal WKs in 2017 in eastern Indonesia, which are commercially viable and attractive to investors

2) Commission public agencies (Badan Layanan Umum/BLU) and state owned companies to conduct exploration and production of geothermal energy in areas that are less economically viable

3) Simplify the permitting process for investors planning to develop geothermal energy through a “one-door” investment permit policy at BKPM (National Investment Coordinating Board);

4) Mandate that certain companies or parties have the capability or interest in geothermal energy development to conduct preliminary survey and exploration (PSPE) in eastern Indonesia.

5) Establish a “Geothermal Fund” to incentivize investors planning to develop geothermal energy in Geothermal WKs in Eastern Indonesia.

 Source: RambuEnergy.com “Indonesia to push geothermal power to 7,200 MW by 2025, Muara Laboh on track” May 29, 2017.