Garut forms team to discuss geothermal production sharing

The local government of the Garut regency in West Java, Pertamina, geothermal power producers in the regency and other related agencies have agreed to form a special team to discuss the production sharing scheme for the regency’s geothermal production, Bisnis Indonesia daily; Jakarta.

The establishment of the team is expected to end the dispute between the local government and the existing geothermal producers over the rights of the local government for the local geothermal output.

Suherman, the spokesman of the Garut administration confirmed the establishment of the team and hoped that the team would be able to make an acceptable geothermal production sharing formula within the next three months.

Besides Pertamina and the local government, the team also comprises of representatives from existing geothermal producers Chevron Texaco Energy Indonesia and the Association of Geothermal Producers (API).

The local government has refused to issue a permit for the expansion of the existing geothermal production activities on the ground that the projects have brought no benefits to the local people.

At present, the central government received a revenue of at least Rp 70 billion from the regency’s geothermal production but none of the money went to the local government’s coffer. The local government only received community development funds from the existing geothermal producers. (*)