Government launches measures to accelerate geothermal development

In a bid to help accelerate the development of geothermal power plants in the country, the government has launched five breakthrough measures which are different to the actions taken in the previous years.

This was said by Director of Geothermal at the Ministry of Energy and Mineral Resources Yunus Saefulhak during a geothermal workshop in Bandung on Monday as quoted by a ministry statement.

The five breakthrough measures are as follows.

First, offering give geothermal working areas (WKPs) located in the eastern part of the country, which have been considered to be commercially feasible, to investors via tender this year. The five WKPs include Gunung Hamiding, Simbolon Simosir, Oka Ile-Ange, Bora Pulu, and Gunung Sirung, with commercial operation date (COD) status of the geothermal power plants to be made in 2024 and 2025.

Second, assigning the development of WKPs, which have yet to be considered commercially feasible for now, to state-owned entities. The government has assigned state-owned electricity firm PT PLN to develop WKPs in Atadei, East Nusa Tenggara; Songa Wayaua, in North Maluku; and Ciater and Tangkuban Perahu, in West Java. The government has also assigned PT Geo Dipa Energy to develop the Candi Umbul Telomoyo and Gunung Arjuno Welirang WKPs.

Third, streamlining the permitting process for geothermal projects. The Investment Coordinating Board has applied a one-stop services for permitting procedure to speed up the process.

Fourth, assigning preliminary survey and exploration permit to companies with potential and interest in developing WKPs in eastern part of Indonesia.

And finally, launching the so-called Geothermal Fund to help attract investors in developing WKPs in the eastern part of Indonesia. The program is aimed at reducing risk in geothermal development in the hope it would attract both private investors and state firms. The revolving fund is managed by the Ministry of Finance?s PT SMI, under which the state budget has allocated Rp 3 trillion and the World Bank provides us455.25 million of grant facility. Three WKPs namely Waisano and Inelika in East Nusa Tenggara, and Jailalo in North Maluku have been declared to be eligible to the fund. Another five WKPs have been proposed to the World Bank.

Editing by Reiner Simanjuntak