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Indonesia to push geothermal power to 7,200 MW by 2025, Muara Laboh on track

JAKARTA ( – The Indonesian Energy and Mineral Resources Ministry continues its efforts to boost the development of geothermal power plants to 7,200 MW by 2025 from only 1,698.5 MW at present.
Director for Geothermal at the Directorate for New, Renewable and Energy Conservation of the energy ministry (EBTKE) Yunus Saefulhak said Indonesia needs to further develop 5,500 MW of geothermal power plants capacity in order to reach the target.
“This is a huge task and not easy. We hope to get support from all stakeholders including the forestry and finance ministries, regional governments and central government to provide incentives and simplify permits in order to accelerate the development of geothermal energy,” he said Sunday.
Last week, PT Supreme Energy Muara Laboh, kicked off the drilling of exploitation in Liki Pinangawan Muara Laboh working area (WKP), Muara Laboh, South Solok, West Sumatera. This is the seventh well out of 19 planned wells to be drilled.
The wells will generate Muara Laboh Unit Power Plant (PLTP Muara Laboh) with capacity of 80 MW and to be operational in 2019. The power plant is projected to light up 120 households in the region.
Supreme Energy Muara Laboh will invest around US$580 million or Rp7.7 trillion to develop the geothermal energy project.
Yunus said the energy ministry has set five programs to achieve the target:
First, auction of five geothermal WKs in 2017 in eastern Indonesia, which are commercially viable and attractive to investors;
Second, giving task to Public Agencies (Badan Layanan Umum/BLU) and state owned companies to conduct exploration and production of geothermal energy in areas that are less economically viable;
Third, simplifying the permit for investors planning to develop geothermal plants through one-door investment permit policy at BKPM (National Investment Coordinating Board);
Fourth, requiring certain companies or parties that has the capability or interested on geothermal development to conduct preliminary survey and exploration (PSPE) in eastern Indonesia.
Fifth, setting up Geothermal Fund to lure investors planning to develop geothermal energy in Geothermal WKs in eastern Indonesia.  (*)

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