Local governments to get production bonus from geothermal projects
Monday, August 1 2016 - 01:33 AM WIB
The paper quoted Yunus Saifulhak, Director of Geothermal at the Directorate General of New and Renewable Energy, as saying that the new regulation has been signed by President Joko Widodo, and is now effective.
He said that production bonus of 1 percent is allocated for the regions if the operator of the geothermal working areas has already signed the steam sales and purchase agreement, but have yet to sign the power sales and purchase agreement.
He added a maximum production bonus of 0.5 percent will be provided if the operator has already signed the power sales and purchase agreement.
Yunus said that the production bonus will be taken from the government?s share of the electricity and steam sales of 34 percent, thus the investors? 66 percent share will not be affected by the new policy.
He said that that new policy is aimed to help the regions obtain greater benefit from the geothermal projects, and increase their sense of ownership in the projects.
The paper said that the Ministry of Energy and Mineral Resources is also set to soon issue two new regulations on geothermal development including for the assigning of state-owned enterprises to develop geothermal working areas.
As has been previously reported by this portal, the ministry will assign three state-owned enterprises (SOEs) to develop eight geothermal working areas.
After the regulation on the assignment has been issued, the three SOEs are expected to start exploration work on the designated geothermal working areas in the hope that the planned geothermal power plants can start operation in 2020.
As has been previously reported, the government will assign three PT Pertamina, PT Perusahaan Listrik Negara (PLN) and PT Geodipa Energi to develop more geothermal power plants. (*)