ASIATODAY.ID, JAKARTA – The Indonesian government will make it easier to obtain investment permits for geothermal development.
The President of the Republic of Indonesia, Joko Widodo, emphasized the need for efficiency in the Geothermal Working Area licensing process, so that it does not take years.
As the owner of the largest geothermal potential, reaching 40 percent of the world’s potential, Indonesia has the opportunity to develop geothermal energy. However, currently, geothermal utilization is not progressing quickly.
“Geothermal Power Plants have a big opportunity, which means that many investors are looking for green energy. We have done this, but it is not going fast. It turns out that starting construction from the beginning to licensing can take up to 5-6 years. This should be the fastest “We have to fix it, so that of the 24,000 MW, only 11% has just been built, it can be done immediately by investors, so that we have more additional green electricity,” said President Jokowi when opening the 10th Indonesia International Geothermal Convention and Exhibition (IIGCE). at the Jakarta Convention Center, Wednesday, September 18 2024.
Apart from that, President Jokowi said, Indonesia is also committed to being an important part of the world’s steps in building a green economy and green industry in making the transition to green energy. However, there are still challenges in terms of price affordability, accessibility to the public, and technology.
“Indonesia is committed to being an important part of the world’s steps in building a green economy, in developing green industry, in making the transition to green energy. I have often conveyed this commitment everywhere,” he said.
On that occasion, the Indonesian Minister of Energy and Mineral Resources, Bahlil Lahadalia, said he would cut the terms and time for licensing the use of geothermal energy to speed up investment.
“We have given permission to the President, we will cut both terms and time, to encourage investors to accelerate investment. So, fellow investors, there is no need to hesitate, we will carry out various constructive reform steps in the context of acceleration,” said Bahlil.
Bahlil said that Indonesia is a country with the largest geothermal energy potential in the world with a potential of 24 GW. Around 40% of the world’s geothermal potential is in Indonesia.
Currently, the capacity of geothermal power plants in Indonesia reaches 2.6 GW, the 2nd highest in the world. This figure has approximately doubled in the last 10 years. The electricity capacity of geothermal plants covers 18.5% of the total national new renewable energy electricity capacity or 3% of the total electricity capacity in Indonesia.
“In the last 10 years, the accumulated investment in the construction of geothermal power plants has also grown significantly, increasing up to 8 times so that by 2024 it is estimated to reach US$ 8.7 billion. The construction of geothermal power plants has created almost 900 thousand jobs, both directly and indirectly. “Direct and capable contribution to the country of 16 trillion rupiah. Not only the economic impact, geothermal power plants have also contributed to reducing 17.4 million tons of CO2 emissions per year in Indonesia,” explained Bahlil.
At the opening of the IIGCE, the Ministry of Energy and Mineral Resources also announced the results of the bid for 7 Geothermal Working Areas (WKP) and Preliminary Survey and Exploration Assignment Areas (WPSPE), namely:
– Cisolok-Sukarame WKP 40 MW
– WKP Nage 40 MW
– WKP Hu’u Daha 60 MW
– WKP Toka Tindung 40 MW
– WPSPE Koto Sani Tanjung Bingkung 40 MW
– WPSPE Bora Pulu 40 MW
– WPSPE Samosir 40 MW
Apart from that, the Geothermal Energy Information System (GENESIS) was also launched. This platform provides integrated survey and exploration data services, as well as geothermal statistics. WPSPE and WKP bidding and auctions are also carried out through this platform.
Then, an Arrangement was also signed between the Ministries of Energy and Mineral Resources of Indonesia and New Zealand regarding cooperation in the field of Renewable Energy and Energy Conservation for the period 2024-2029. Then, an MoU between the Indonesian Ministry of Energy and Mineral Resources and the Icelandic Ministry of Environment, Energy and Climate regarding cooperation in the field of Renewable Energy for the period 2024-2029.
The Indonesian Minister of Energy and Mineral Resources also witnessed the signing of an MoU between Pertamina Geothermal Energy and the Geothermal Development Company regarding the development of a 100 MW project in Kenya as well as the signing of a joint committee agreement to accelerate geothermal development between the Directorate General of New, Renewable Energy and Energy Conservation (EBTKE) and Indonesian Geothermal Association (API). (AT Network)
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