Japan gives grant in the form of equipment for exploration work to Indonesia

Local news report this morning that “the Japan International Cooperation Agency has given a grant of 65 million yen ($667,000) worth of equipment to Indonesia’s Energy and Mineral Resources Ministry to continue developing the country’s vast geothermal potential, an official said on Tuesday.

R. Sukhyar, the ministry’s chief geologist, said at a press conference in Bandung that the move would essentially see Indonesia inherit the equipment used since 2010 as part of a collaboration between the two sides to explore, analyze and evaluate the development of geothermal power in Indonesia.

The collaboration ends next month.

“Indonesia has all kinds of geothermal sources, which require a range of geoscience expertise. So our human resources competency and our technological capabilities are important in developing this energy source,” Sukhyar said.

He added that through the collaboration with JICA, the Energy Ministry had identified 299 sites where geothermal energy could feasibly be exploited, with a total potential capacity of 29 gigawatts — the largest geothermal potential in the world. However, the country currently only produces a fraction of that amount, or 1.34 GW.

Sukhyar attributed the lack of development to the high cost of harnessing geothermal energy, with the cost of drilling a single well pegged at $5 million.

Minoru Matsunoshita, a JICA representative, said that Japan would continue to support the Indonesian government in trying to fully exploit the country’s geothermal potential, including possibly extending the ongoing collaboration for several more years.”

Source: The Jakarta Globe