The Indonesian Energy and Mineral Resources Ministry is working to help boost the development of geothermal power plants in Indonesia from the current 1698.5 MW to 7200 WM by 2025.
Director for Geothermal at the Directorate for New, Renewable and Energy Conservation of the energy ministry Yunus Saefulhak said that Indonesia will need to develop 5,500 MW of geothermal power capacity in order to reach this goal. Earlier this month Indonesian PT Supreme Energy Muara Laboh officially started the development phase of Geothermal Power Plant project of Muara Laboh phase I with 80 MW marked by the well First Exploitation in Geothermal Working Area Liki Pinangawan Muaralaboh, South Solok District, West Sumatra Province. PT SEML plans to drill eight production wells and three injection wells. The development of PLTP is expected to be completed by mid 2019, and the electricity generated will be distributed to PT PLN (Persero) under a 30-year power purchase agreement. In addition, Indonesian Energy and Mineral Resources Ministry is focusing their efforts on these five goals. 1) Auction of five geothermal WKs in 2017 in eastern Indonesia, which are commercially viable and attractive to investors 2) Commission 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 3) Simplify the permitting process for investors planning to develop geothermal energy through a “one-door” investment permit policy at BKPM (National Investment Coordinating Board); 4) Mandate that certain companies or parties have the capability or interest in geothermal energy development to conduct preliminary survey and exploration (PSPE) in eastern Indonesia. 5) Establish a “Geothermal Fund” to incentivize investors planning to develop geothermal energy in Geothermal WKs in Eastern Indonesia.