Forestry Law hampers geothermal projects

The forestry law which prohibits open-pit mining operations in protected forests has also hampered the development of geothermal power plants, Kompas reported on Saturday.

Abadi Poernomo, the President Director of PT Pertamina Geothermal Energy (PGE), said on Friday that investors interested in developing geothermal plants are faced with difficulties in obtaining permits from the government because the development of geothermal wells is also considered an open-pit mining activity.

As the consequence, a larger part of the country?s potential geothermal deposits, said to be able to generate about 27,000 megawatt, which are mostly located in forest conservation areas, could not be developed.

He cited that the development of the Unit V of the Kamojang Power Plant in West Java which is operated by PT PGE, had been delayed since 2003 because the difficulty to get the government?s permit for land clearance.

According to its plan, PGE will develop between six and seven geothermal wells covering an area of about 11 hectares as part of the expansion of the Kamojang geothermal plant, with an initial investment of about US$5 million.

The project which is expected to generate about 60 MW is located within a protected forest area.

Abadi said that the Kamojang power plant currently has four units with total capacity of 200 megawatt. The company sells 60 megawatt of electricity to state owned electricity firm PT Perusahaan Listrik Negara (PLN), and another 140 MW of geothermal steam to PLN?s subsidiary Indonesia Power. (*)