Government plans geothermal exploration drilling in three areas
Saturday, February 2 2019 - 03:15 AM WIB
The government plans to assign state-owned companies such as geothermal power producer PT Pertamina Geothermal Energy and state-owned electricity firm PT PLN to carry out geothermal exploration in three geothermal areas, Bisnis Indonesia reported Saturday.
The paper quoted Director of Geothermal at the Ministry of Energy and Mineral Resources Ida Nuryatin Finahari as saying that the three geothermal areas include Seulawah in Aceh Province, Candradimuka in Banjarnegara Regency, Central Java Province, and Atadei in Lembata Regency, East Nusa Tenggara Province.
She said that the government will use the leftover geothermal funds managed by state-owned PT Sarana Multi Infrastruktur (SMI) worth around US$184 million to help finance the geothermal exploration drilling activities in the three areas.
Ida said that SMI had previously managed Rp 3.21 trillion (US$233 million) of government funds, plus a $49 million grant facility from the World Bank to help finance geothermal exploration in the country.
The funds were allocated to finance geothermal exploration in four geothermal working areas, namely Wae Sano, Jailolo, Bittuang, and Nage.
Of the four areas, exploration drilling in Wae Sano, East Nusa Tenggara Province, is expected to start first as preparations to hold tender to select the contractor are in progress, with tender expected in the first quarter of this year. Total investment is estimated at US$30 million with exploration period estimated at three years. Based on the preliminary estimate, the Wae Sano area holds power generating potential of 50 MW. (*)