New Zealand plans to invest in RI geothermal sector

New Zealand is planning to expand its investment in the development of the geothermal sector in Indonesia, reports said on Tuesday.

On Monday, Indonesian Vice Minister of Energy and Mineral Resources Susilo Siswoutomo signed an MoU with his visiting counterpart New Zealand?s Minister of Economic Development Steven Joyce for cooperation in the development of power plants in Indonesia.

Susilo said that New Zealand government plans to spend about NZ$15 million, about US$12.86 million, for feasibility study to scout for the appropriate locations of the geothermal development.

He added that New Zealand firms will also provide investment and the necessary technology, as well as training program for Indonesian engineers. There are 11 New Zealand companies which have expressed interest in providing technology and training program among others AECOM Power and Energy, Cortexo Limited NZ, Sinclair Knight Merz, Hawkins, and GNS Science. The companies will also cooperate with the Indonesia?s Gajah Mada University.

Indonesia has geothermal reserves estimated at 28 gigawatts, about 40 percent of world?s reserves. Meanwhile, New Zealand produces about 90 percent of its energy supply from renewable energy sources, mostly geothermal, Joyce said. (*)