Energy, Forestry ministers sign MoU to speed up geothermal projects

Energy and Mineral Resources Minister Jero Wacik and Forestry Minister Zulkifli Hasan on Monday signed a memorandum of understanding on coordination and acceleration of license issuance for geothermal projects development in productive, protected and conservation forestry areas.

The MoU is part of the government efforts to speed up the development of geothermal energy projects in Indonesia as most of geothermal energy projects are located within forestry areas. Some of geothermal power plants construction has been delayed as they have yet to receive permit from the forestry ministry.

Many of the geothermal energy projects are found in Sumatera, Java, Nusa Tenggara, Banda, North Sulawesi and Halmahera.

The government found that there are 276 spots of potential geothermal energy with total capacity of 29,038 MW. So far, only 1,196 MW or 4.1 percent of the geothermal energy has been utilized for power plants.

As part of the MoU, the energy and forestry ministers have agreed to set deadline for the issuance of permit for 28 geothermal power plant projects which are located within protected, productive and conservation forest areas.

Of the 28 projects, 14 geothermal power plant projects (PLTP) were awarded by the government prior to the enactment of Law No. 27, 2003 on Geothermal, while the other half were awarded after the enactment of the Law No 27, 2003. (romel)