Government to soon issue three geothermal regulations

By Romel S. Gurky

The government plans to issue this year three implementing regulations of the new Law No 21/2014 on geothermal.

?There are three implementing government regulations which are targeted to be issued this year, but we?ll first focus on the one which regulates production bonus from geothermal development because it has been long awaited by local governments,? said Director General of New and Renewable Energy Rida Mulyana in a press statement obtained on Monday.

Rida said that the particular new regulation is important to allow local governments where the geothermal project is located to benefit from the geothermal development. He said that for so many years, local governments have not been able to get direct economic benefit from geothermal project in their regions.

Aside from regulation which arranges the production bonus, the government will also issue two other regulations, respectively on geothermal development for indirect utilization, and geothermal development for direct utilization. ?For example, utilization for spa, heater, will now be regulated,? Rida said.

Elsewhere, Rida said the government has managed to resolve obstacles hampering the development of 14 geothermal power projects. ?Now all the projects have signed power purchase agreement, and began exploration stage,? he said.

Editing by Reiner Simanjuntak