Indonesia:

Geothermal Bill Passed (Jakarta Post)

Geothermal exploration no longer considered a mining activity

(Courtesy CIA.gov)

The Indonesian House of Representatives passed the much anticipated-geothermal bill into law in a plenary meeting on Tuesday. In the meeting, all factions agreed to endorse the bill to replace Law No.27/2003 on geothermal energy.

Energy and Mineral Resources Minister Jero Wacik praised the passing of the law, saying that it would let geothermal-based development projects expand further.

Jero went on to say that the government’s target to accelerate the development of a second-phase 10,000 MWe of geothermal-based power plants would be reached.

The ministry’s renewable energy and energy conservation director general, Rida Mulyana, said the newly signed law had at least four points that were different to the previous geothermal law. One of the differences was that the government no longer considered geothermal exploration a mining activity, an issue that had long hampered the development of renewable energy potentials.

Most geothermal exploration areas are thought to be located within forestry areas, which are prohibited for any excavation activities. Hampered by obstacles, only 1,300 MW out of total 29,000 MW geothermal energy potential has been tapped.

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