Indonesia’s government issues geothermal power guideline

The Indonesian government has announced that state power company PT PLN will buy geothermally-sourced power managed by private companies. “Investors are waiting. They are very interested in building geothermal power plants,” said Vice President Boediono.

In addition, the Finance Ministry’s Regulation no.77/2011 on PLN’s Business Feasibility Assurance, which was signed by the finance minister on August 22, could relieve investors’ doubts about PLN’s financial capability, adding further clout to the new law.

The move is a positive signal for private companies to go ahead with plans to construct geothermal power plants. However, the guarantee will not apply if developers have not found financial support to fund their project within 48 days.

Indonesian Geothermal Association chairman Abadi Poernomo, said the new regulation would accommodate the interests of geothermal developers.

The government hopes to use 3967MW of geothermal electricity in the second stage of the 10,000MW acceleration programme. So far, the country has only developed 1198MW of geothermal power of its 29,000MW of energy potential.

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