Local govts to get 10% stake in geothermal power plant

The local governments will be given the right to own 10 percent of a geothermal power plant to be built in their respective provinces, Kontan daily reported on Wednesday.

Tisnaldi, the director for geothermal development at the energy and mineral resources ministry, said in Jakarta on Tuesday that such an incentive was needed so that the development of geothermal power plants would be able to give contribution to the local government?s revenues.

?Allocating a 10 percent stake is mandatory for a geothermal power plant developer, especially after their geothermal fields have begun production,? he said.

According to him, the mandatory divestment program will be part of the changes to be made in the geothermal Law of 2003 which would be revised . The draft for the revision of the geothermal law has been completed and will soon be submitted to the President, he added. (*)