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Indonesian’s target of 6,000 MW geothermal capacity can be realized in 10 years

Alexander Richter 4 Nov 2009

Indonesia could realize the exploitation of a 6,000 MW target of geothermal electricity generation within 10 years with an investment of about US$15 billion.

According to an article of late October, Indonesia could realize the exploitation of a 6,000 MW target of geothermal electricity generation within 10 years with an investment of about US$15 billion.

The article talks about that “the government hopes to boost geothermal production to meet the energy needs of low-cost and environmentally friendly will continue to increase. Investment of US$ 15 billion are expected to be needed in stages as much as US$1.5 billion per year.

In the future, geothermal production capacity is targeted for 9,500 MW in the year 2025. So throughout 2021 until 2025 the government still requires no less than US$ 9 billion for geothermal projects. However, the government can not provide funds from the state budget only, so that cooperation with the private sector is indispensable.

Energy Sector Study consultants conducted by the ADB said that Indonesia has geothermal reserves as much as 40 percent of the world’s geothermal reserves. In fact, Indonesia is able to generate electricity up to 27 thousand MW per year. This amount is equivalent to the electricity generated from 420 million barrels of fuel oil per year.

If cashed, Indonesia geothermal reserves are worth up to US$ 30 billion per year.

Bappenas mentioned, geothermal exploration faces structural obstacles to investment activities, such as land constraints, as about 70% of geothermal reserves are located in protected forest area, as well as power purchase agreements for the generated electricity and the concession agreements with the government. In addition, the electric power transmission system and provincial capacities are not equally distributed and there might be a shortage in human resources.

Separately, the Deputy of Infrastructure at the Ministry of National Development Planning / Bappenas Priatna Dedy Supriadi said that the government really wants to encourage geothermal develoopment activity in the country. But for now, the first in-push are the concession owned by PT Pertamina (Persero) and PT PLN (Persero), especially PT Pertamina, he said.”

Source: Media Indonesia (in Indonesian)