United States Eyes Investing in Indonesia's Geothermal Energy

United States Eyes Investing in Indonesia's Geothermal Energy

Indonesia's geothermal potential is still attracting a number of investors,
especially from the United States.

Ignasius Jonan, Minister of Energy and Mineral Resources, said the business
agreement signing between state-owned Perusahaan Listrik Negara (PLN) and
Halliburton does not only strengthen the cooperation between Indonesia and
the United States, but also prove that geothermal sector investments are
still attractive.

PLN and Halliburton agreed to develop geothermal working areas owned by PLN,
including potential investments from the United States.

In February, both companies have signed contracts worth United States (US)
$34 million to drill geothermal wells in Tulehu, Ambon, North Maluku, and
develop a long-term strategy for the development of Geothermal in Indonesia.

"This is also a proof that investment in the renewable energy sector
attracts investors," said Jonan on Sunday (4/23).

Investments in new renewable energy in 2017 is targeted to increase by 13%
to $1.56 billion compared to this year of $1.37 billion. The target is
equivalent to IDR21 trillion, assuming an exchange rate of Rp13,500 per
dollar.

Based on data from the Directorate General of Renewable Energy and Energy
Conservation (EBTKE) of the Ministry of Energy and Mineral Resources (ESDM)
new renewable energy investment next year will be higher by $190 million
compared to this year.

US Ambassador to Indonesia Joseph R. Donovan said the cooperation shows the
United States' commitment to improve trade and investment relations.

From the 2015 Investment Outlook Survey data on the official website of
American Chamber Indonesia, 72% of respondents rated corporate profits will
increase this year, 18% rate the same, 8% consider the profit actually
decreased and 2% others did not know.

From the aspect of business environment satisfaction, Indonesia still needs
to improve some aspects such as infrastructure, regulation, business
incentives, tax structure, customs, protectionist protection and the
availability of trained local workers. The reason, these aspects have a low
satisfaction rate ranging from 3% to 8%.

Meanwhile, aspects with the highest level of satisfaction ranged from 35% to
45% of the availability of cheap labor, the stability of government and
political systems, security and sentiment towards the United States.

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Link to Original Article:
http://www.en.netralnews.com/news/business/read/4610/united.states.eyes.inve
sting.in.indonesia.s.geothermal.energy

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com