Licensing problem hampers Giri Indah?s geothermal project

Independent power producer PT Giri Indah Sejahtera?s plan to develop a geothermal power plant worth about Rp 3 trillion in Mt Ungaran, Central Java has been hampered by a licensing problem, Bisnis Indonesia reported on Monday.

The head of the energy and mineral office of the Central Java administration, Teguh Dwi Paryono, said in Semarang last week the company was unable to begin the geothermal project due to a delay in the issuance of a permit from the forestry ministry.

He said that although the company had received a permit to carry out exploration activities, it was still unable to conduct drilling works to find geothermal potential due to the lack of the forestry ministry?s permit.

State electricity company signed last year a purchase contract to buy electricity from PT Golden Spike Energy Indonesia?s subsidiary PT Giri Indah Sejahtera which which has won a tender to build a geothermal power plant with a capacity of 1 x 55 MW in Mt Ungaran, Central java.

Teguh hoped the forestry minister could issue the permit this year so that the development of the geothermal project could be begun before the end of the year. ?If the exploration process can begin this year, the geothermal power plant can start commercial operation in 2016,? he added.(*)