Energy Ministry proposes Geothermal Fund

The Energy and Mineral Resources Ministry has proposed the establishment of the Geothermal Fund which will be used to finance survey in finding new geothermal reserves in the country, Bisnis Indonesia reported on Wednesday.

Director General of Renewable Energy and Energy Conservation, Rida Mulyana said in Jakarta on Tuesday that his office and the finance ministry were still discussing the sources of funding for the proposed Geothermal Fund.

He said that the Geothermal Fund could also be used to help the financing of geothermal projects which have been delayed due to financial problems. ?We are still discussing the mechanism of the geothermal fund as well as to identify geothermal projects which have been delayed, and to find out what exactly their problems are,? he added.

At least 50 geothermal fields which are now under development have not begun production. Most of their operations have been delayed, mostly due to licensing problems related to the use of protected forests.

According to Rida, only 10 of the geothermal fields are delayed because of financial problems. (*)