Government set to soon hold tender of geothermal working areas
Monday, April 3 2017 - 02:02 AM WIB
Bisnis Indonesia quoted Director General of New and Renewable Energy at the ministry Rida Mulyana as saying Monday that the tender is expected to be held before the end of the first semester of this year. ?Hopefully, (tender will be held) before the end of the first half of this year,? he said.
Director of Geothermal at the directorate general, Yunus Saifulhak said that there will be five geothermal working areas to be offered in the upcoming tender, mostly located in the eastern part of Indonesia. He said that as the so-called electricity supply cost (or BPP) of state-owned electricity firm PT PLN is relatively high in the eastern part of Indonesia region, investors will be quite attractive to develop geothermal power plants in the region as they can sell electricity to PLN at higher price as well.
Minister of Energy and Mineral Resources Ignasius Jonan has issued Ministerial Regulation No 23/2017 on geothermal production bonus, this portal reported on March 25 quoting a ministry statement.
The new ministerial regulation stipulates that geothermal developers who are already in production stage are obliged to pay production bonus to local administrations where they operate. (*)