The House of Representatives (DPR) on Tuesday passed a geothermal energy bill into law, replacing law number 27 of 2003.
All factions in the House agreed to the passage of the government-initiated bill into law during a plenary meeting.
“Allow us to endorse the geothermal bill into law,” House Deputy Chairman Pramono Anung, who led the plenary meeting, said.
President Susilo Bambang Yudhoyono proposed the bill to the House on August 13, 2013.
Energy and Mineral Resources Minister Jero Wacik, who delivered the governments final view at the plenary meeting, said the passage of the bill into law would encourage the development of geothermal energy on a larger scale.
“The development of geothermal energy will proceed at a faster pace,” he said.
With the law being enacted, the second phase of the construction of power plants, some of which use geothermal energy, having a combined capacity of 10,000 MW, could be expedited, he said.
“The geothermal resources will ensure energy self-reliance. We are very optimistic that this could be achieved because geothermal energy is a renewable resource,” he said.
Indonesia is projected to hold geothermal reserves capable of generating 29,000 MW of electrical power. However, the use of such energy has so far contributed nearly 1,300 MW of the total electrical power production.
President director of the state electricity company (PLN), Nur Pamudji, said the passage of geothermal bill into law would enable the use of geothermal energy to increase more rapidly.