Minister Encourages Private Company to Develop Geothermal Energy
27 November 2016 17:34 WIB
TEMPO.CO, Jakarta - Energy and Mineral Resource (ESDM) Minister Ignasius Jonan said that the investment value of geothermal energy is still high.
Therefore, Jonan expects national or foreign private companies can participate in developing geothermal energy as electricity plants. By doing so, the targeted 2.300 megawatt from geothermal-fueled power plants (PLTP) by 2025 can be met.
"As President’s direction, people’s participation in the form of national and foreign private companies are expected. By having such participation, we do not have to rely solely on state budget (APBN) and state-owned enterprises (BUMN), Jonan said in Tomohon, North Sulawesi on Saturday (26/11).
Private companies’ participation in electricity sector investment is expected to be able to meet 35 thousand megawatts electricity project.
Despite so, Jonan believes that geothermal-fueled power plants have different challenges compared to other energy sources.
Compared to other electricity power plants, the amount of electricity capacity from geothermal cannot be predicted before exploration is conducted.
In addition, the use of geothermal is still limited to generating electricity.
As a result, Jonan said, both Pertamina as a producer and PLN as a buyer has to further negotiate on the tariffs involved. Furthermore, regulatory policies can also help to attract investors to make investment in geothermal sector.
"What’s certain is geothermal has to be used," Jonan added.
LARISSA HUDA