Several geothermal power plants might stop operation

The issuance of Forestry Minister?s new regulation on the change in the status of the Gunung Salak forests in West Java into a national conservation area or part of the existing Halimun protected forests, has threatened the existence of geothermal power plants in the area, Koran Tempo reported on Monday.

The inclusion of the Gunung Salak forests into the Halimun conservation will affect the geothermal power plants because under the existing regulation, no business activities are allowed to operate within a forest conservation area.

There are now six geothermal power generating units in the Gunung Salak forests area, with a total capacity of about 330 MW. The plants are operated by PLN?s subsidiary PT Indonesia Power and American firm Unocal, in cooperation with state owned oil and gas company Pertamina.

Director General for Forests and Natural Conservation at the Ministry of Forestry, Koes Sapariadi acknowledged the issuance of the new regulation. He said that the fate of the existing geothermal power plants located in the expanded conservation area would soon be discussed with related parties.

According to him, the new regulation would not affect the existing geothermal power plants because they have been operated under a lease agreement with the ministry of forestry. (*)