Indonesia: Minister Encourages Private Company to Develop Geothermal Energy

Indonesia: Minister Encourages Private Company to Develop Geothermal Energy

Energy and Mineral Resource (ESDM) Minister Ignasius Jonan said that the
investment value of geothermal energy is still high.

Therefore, Jonan expects national or foreign private companies can
participate in developing geothermal energy as electricity plants. By doing
so, the targeted 2.300 megawatt from geothermal-fueled power plants (PLTP)
by 2025 can be met.

"As President's direction, people's participation in the form of national
and foreign private companies are expected. By having such participation, we
do not have to rely solely on state budget (APBN) and state-owned
enterprises (BUMN), Jonan said in Tomohon, North Sulawesi on Saturday
(26/11).

Private companies' participation in electricity sector investment is
expected to be able to meet 35 thousand megawatts electricity project.

Despite so, Jonan believes that geothermal-fueled power plants have
different challenges compared to other energy sources.

Compared to other electricity power plants, the amount of electricity
capacity from geothermal cannot be predicted before exploration is
conducted.

In addition, the use of geothermal is still limited to generating
electricity.

As a result, Jonan said, both Pertamina as a producer and PLN as a buyer has
to further negotiate on the tariffs involved. Furthermore, regulatory
policies can also help to attract investors to make investment in geothermal
sector.

"What's certain is geothermal has to be used," Jonan added.

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Link to Original Article:
http://en.tempo.co/read/news/2016/11/27/056823541/Minister-Encourages-Privat
e-Company-to-Develop-Geothermal-Energy

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com