Government provides Rp 3.7t geothermal fund

The government has allocated Rp 3.7 trillion worth of geothermal fund this year to help finance geothermal exploration activities.

Geothermal Director at the Ministry of Energy and Mineral Resources, Yunus Saefulhak said that the state budget allocates Rp 3 trillion to the fund, and the World Bank US$55.25 million, or Rp 700 billion, thus making a total geothermal fund of Rp 3.7 trillion.

He said that the government has assigned state-owned infrastructure financing firm PT Sara Multi Infrastruktur (SMI) to distribute the funds to finance exploration activities particularly in ?less attractive? areas.

SMI has also been assigned by the government to help provide geothermal data and information to prospective investors to help minimize exploration risk.

The program forms part of the government?s efforts to help meet its target for renewables to account for 23 percent of the country?s energy mix in 2025.

Editing by Reiner Simanjuntak