Indonesia: New Geothermal Legislation By the End of the Month

Regulation on Geothermal Energy Imminent (English Hukumonline)

(Courtesy CIA.gov)

Rida Mulyana, Director General of Energy Conservation and Renewable Energy at the Ministry of Energy and Natural Resources stated that Minister of Energy and Mineral Resources Regulation No. 17 of 2014 on the application of geothermal rates based on a feed in tariff scheme was one of the best in the world.

In addition to issuing the tariff-scheme regulation, Mr. Mulyana also promised to complete the drafting of a government regulation (Rancangan Peraturan Pemerintah – “RPP”) relating to geothermal energy as soon as possible. The new regulation, which is based on Law No. 21 of 2014 on Geothermal Energy, has now entered its final drafting phase.

Mr. Mulyana is positive that the RPP on Geothermal Energy will be ratified by the end of this year and is well aware that the new regulation has been keenly awaited by many parties. Indeed, not only businessmen but also local governments, who stand to benefit from any new investments, are awaiting the introduction of the new RPP.

“The new Geothermal Law has been drafted with reference to two of the three currently existing RPP, including the RPP on bonus production, and the new law is highly anticipated by its future beneficiaries. Hopefully, it will become a PP before the end of 2015,” Mr. Mulyana added.

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