The Ministry of Energy and Mineral Resources of Indonesia has earmarked total investments of up to IDR 450 billion for geothermal exploration drilling in 2021, as reported by Bisnis.com from Indonesia.
Director of Geothermal at the Directorate General of New, Renewable Energy and Energy Conservation of the Ministry of Energy and Mineral Resources Ida Nuryatin Finahari said that the funds were used for drilling in three locations of geothermal working areas (WKP). The three WKPs have potential resources of up to 112 MW and a 60 MW development plan.
“The Rp450 billion budget is in the Geological Agency. This is for drilling in three locations, namely WKP Cisolok Cisukarame in Sukabumi, West Java, WKP Bituang in South Sulawesi, and WKP Nage in East Nusa Tenggara,” he told Bisnis, recently.
This exploration drilling is part of the government drilling program launched by the Ministry of Energy and Mineral Resources as one of the government’s strategies to accelerate geothermal development.
Through this program, the government will improve the quality of data and improve the quality of data on geothermal working areas before being offered to business entities through an auction process.
The exploration stage is the stage with the greatest risk of failure.
Exploration drilling by the government is expected to increase investor interest in developing geothermal energy because the government has borne the risk of failure in geothermal exploration to make the price of geothermal electricity more competitive.
During 2020-2024, the government will drill 20 WKPs with potential resources of up to 1,844 MW and development plans of up to 683 MW.