Foreign owners of geothermal plants in Indonesia, like Panax Geothermal of Australia, will not be impacted by a change in Indonesian resource ownership laws, with geothermal and renewable energy investments protected.
Last month Indonesia’s Energy and Mineral Resources Ministry announced that foreign investors in coal, copper, gold and other resources would be required to reduce their stakes to 49% 10 years after the original date of production.
However, Panax has received legal advice confirming that geothermal and renewable energy projects are excluded from the new requirement.
Managing director Kerry Parker said the government in Indonesia was actively supporting and encouraging foreign investment in geothermal projects.
