Investment in geothermal sector jumps over 60%

By Godang Sitompul

Despite lack of interest from investors in recent tender of geothermal working areas, the Ministry of Energy and Mineral Resources claims that investment in the sector has been on the rise.

Director of Geothermal at the ministry Yunus Saefulhak said on Tuesday that realized investment in the geothermal sector in the first nine months of this year jumped by 60.41 percent to US$770 million from $480 million in the corresponding period of last year.

?This shows that investors are still attracted to the geothermal business,? he said. He added that the performance provides optimism that the full-year target of $960 million can be achieved. He pointed out that KS Orka plans to drill two geothermal wells at the Sorik Merapi geothermal area.

Yunus said that geothermal tenders this year are not only participated by domestic companies but also foreign firms such as ENEL Group from Italy, Hitai Group from Turkey, EDC from the Philippines, and Mitsui from Japan, as well as investors from South Korea.

Editing by Reiner Simanjuntak