German investors eye RI geothermal business

A number of German companies have expressed their interest to invest in Indonesia?s geothermal power projects during a recent meeting with representatives from Pertamina Geothermal Energy (PGE), the Indonesian Geothermal Association and the government.

?They have strong interests, but we need clear regulation in order to be able to encourage them to invest in the country?s geothermal industry,? the association?s chairman Abadi Purnomo said in Jakarta on Wednesday as quoted by Investor Daily.

Former director general of geothermal at the Ministry of Energy and Mineral Resources, Sugiharto Harsoprayitno, said that the German investors asked many things about business opportunities in Indonesia?s geothermal sectors.

Sugiharto said that the German investors had the opportunities to develop geothermal power plants and provide equipment. He said an investor will need to allocate about 55 percent of investment for exploration and geothermal steam production, and the other 45 percent for the power plant.

Indonesia?s potential energy resources reach about 29,000 megawatts (MW). About 1,200 MW of the total has been developed, and another 5,000 MW has been auctioned for development.(*)