Pertamina to push geothermal power plant development

State-owned oil and gas firm PT Pertamina aims to push for the development of geothermal power plants in the country with US$2.5 billion in new investment until 2019, boosting total capacity to 1,026 MW.

This was said by Pertamina President Director Dwi Soetjipto Sunday following the inauguration of the operation of the 35 MW Kamojang unit 5 geothermal power plant in West Java by President Joko Widodo.

Dwi acknowledged that there are challenges in developing geothermal power projects. While did not spell out what the challenges are, he said that many investors have for now avoided geothermal projects. As a result, Indonesia, which has the world?s largest geothermal resources of 28,000 MW, only 5 percent has been utilized.

Dwi said Pertamina is committed to push ahead with the development of geothermal power plants in the country at a time when many investors are turning away due to the challenges. Aside from the Kamojang unit 5, Pertamina?s other current geothermal power plant projects include Karaha (1x30 MW) in West Java, Ulubelu 3 and 4 (2x55 MW) in Lampung, Lumut Balai 1 and 2 (2x55 MW) in South Sumatera, Lahendong 5 and 6 (2x20 MW) and small scale Lahendong 2x5 MW in North Sulawesi, Sibayak 1x5 MW in North Sumatra, Hululais 1 and 2 (2x55 MW) in Bengkulu, and Sungai Penuh 1 (1x55 MW) in Jambi, all of which have combined capacity of 505 MW and investment of $2.5 billion.

?The projects are expected to start commercial operation gradually from 2015 until 2019,? Pertamina said in a statement.

Editing by Reiner Simanjuntak