Red tape hampers geothermal energy development

Red tape hampers geothermal energy development

Despite Indonesia's significant geothermal energy potential, industry
players have been discouraged to invest in the sector due to excessive red
tape in the country, an expert said on Sunday.

Institute for Essential Services Reform executive director Fabby Tumiwa said
regional regulations - a result of political decentralization - posed
challenges for investors to develop geothermal energy.

"It can take years for investors to obtain a permit for exploration. Those
of them who initially plan to finish their projects in five years are
discouraged because they have to bear extra costs as a result of delayed
projects," he said during a radio talk in Jakarta.

Meanwhile, Rida Mulyana, the energy and mineral resources director general
for renewable energy and conservation, said she was aware of the problem but
it was out of the ministry's control.

"Two-thirds of the time needed to obtain permits is spent at local
government, outside of the ministry's control," he said.

However, the ministry is committed to speeding up the permit process, said
Yunus Saefulhak, the Energy and Mineral Resources Ministry's director of
geothermal energy.

"Previously, there were 29 permits from the energy and mineral resources
ministry in relation to geothermal energy, but now the number of permits has
been slashed to five," he said.

Currently, geothermal energy makes up 1,400 MW of the country's total
installed power plant capacity of about 55,000 MW.

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

Link to Original Article:
http://www.thejakartapost.com/news/2016/11/06/red-tape-hampers-geothermal-en
ergydevelopment.html

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com