Decree on geothermal power projects expected end August

The Directorate General of New and Renewable Energy at the Ministry of Energy and Mineral Resources is expected to issue a decree assigning three state-owned enterprises (SOEs) to develop eight geothermal working areas at the end of August, Bisnis Indonesia reported on Tuesday.

The paper quoted Geothermal Director at the directorate Yunus Saefulhak as saying that after the decree has been issued, the three SOEs are expected to start exploration work on the designated geothermal working areas in the hope that the planned geothermal power plants can start operation in 2020.

As has been previously reported, the government will assign three PT Pertamina, PT Perusahaan Listrik Negara (PLN) and PT Geodipa Energi to develop more geothermal power plants.

Yunus said in May PLN will be assigned to build a 2x5 MW geothermal power plant (PLTP) in Tulehu, Maluku province and a 60 MW geothermal power plant in Sembalun, West Nusa Tenggara (NTB) province.

The firm has been previously assigned to build PLTP Mataloko (3x10 MW) and PLTP Ulumbu (2x5 MW), both located in East Nusa Tenggara (NTT) province. With regards PLTP Ulumbu, its capacity will be expanded to 30 MW.

Meawhile, Pertamina is applying for permits to develop several geothermal working areas. Pertamina will however be prioritized to develop PLTP Kotamobagu and PLTP Iyang Argopuro.

Kotamobagu working area in North Sulawesi province and Iyang Argopuro working area in East Jaa province are actually two old working areas which Pertamina, through its subsidiary PT Pertamina Geothermal Energy (PGE) once tried to develop. However, PGE discontinued its activities there and returned them to the government because both areas are situated in conservation zones, which were back then out of bounds for geothermal explorations. Now, following the issuance of Geothermal Law No. 21/2014, such areas are no longer out of bounds for geothermal operations. Chapter 5 of the law stipulates geothermal development can be carried out in cross-provincial areas and conservation zones.

The government will assign Geodipa to develop geothermal resources in Arjuno Welirang in East Java province and Umbul Telemoyo in Central Java province.(*)