Indonesia: Plans for appointment of 150 MW Ciremai geothermal working areas to Pertamina

Indonesia: Plans for appointment of 150 MW Ciremai geothermal working areas
to Pertamina

Following struggles with local opposition to foreign ownership, the
Indonesian government is planning the appointment of the 110-150 MW Ciremai
geothermal working area to Pertamina Geothermal Energy.

Reported locally, ideas about an auction for the geothermal working area at
The Ciremai mountain in West Java in November 2016 have been scrapped.
Chevron was the previous operator of the Ciremai Block, but there has been
strong local opposition and after years of struggle, Chevron returned the
working area to the Indonesian government.

With general opposition of locals for any foreign or private ownership, the
Energy and Mineral Resources Ministry in Indonesia will now appoint PT
Pertamina to become the operator of the area. "They [local residents] at the
vicinity of Ciremai Block suggested it be operated by Pertamina," Energy
Ministry Geothermal director Yunus Saefulhak told local papers this week.

An auction was initially planned to be held in mid-November 2016, but now
the Ministry plans to develop the Ciremai geothermal working area through
Pertamina Geothermal Energy. The potential development size is between 110
and 150 MW with the working area covering an area of 38,560 hectares.

Any appointment of Pertamina is though not likely in the near future, as
there still needs to be government regulation on indirect geothermal
utilisation and this is now in discussion on government level. The Ciremai
geothermal working area would add to a total of 6 geothermal working areas
held/ developed by Pertamina. Pertamina said that it has submitted
operatorship proposal. Pertamina would let its subsidiary PT Pertamina
Geothermal Energi (PGE) to become the operator.

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com