Government to allocate Rp 1.6t for geothermal exploration

The government will allocate from the state budget Rp 1.6 trillion for exploration of geothermal energy in the country. Head of the Fiscal Policy and Fiscal Risk Management Center at the Finance Ministry, Freddy Saragih, said the rolling funds would be extended in 5 working fields, each having at least 3 exploration wells.

"If exploration in one of the working fields succeeds, the government will be committed to adding the funds by up to 150 percent next year,? he said. The funds will be paid back by the contractors after production phase to finance exploration in new working fields.

The Ministry of Energy will decide which working fields are entitled to the rolling funds, but it will give priority to eastern part of Indonesia.

Freddy said the funds would ease contractor?s financial burden and would be rolled after five or seven years. Indonesia?s geothermal target road map has been set at 9,500 MW in 2025.(Giok)