Indonesia: U.S. Department of State Proposes a Geothermal Risk Reduction Program to Help Development

White House Fact Sheet: U.S.-Indonesia Energy Cooperation

On October 23, 2015, U.S. Secretary of Energy Moniz and Indonesian Minister of Energy and Mineral Resources Sudirman Said signed a Memorandum of Understanding to expand existing energy cooperation including collaborating on financing structures and adequate project risk mitigation tools to accelerate the pace of geothermal investments in Indonesia.

U.S. Department of State: Climate Benefits of Geothermal Energy Development

To increase our cooperation on climate change and bolster Indonesian energy security, the United States and Indonesia will collaborate on financing structures and adequate project risk mitigation tools to accelerate the pace of geothermal investments in Indonesia. Indonesia has approximately 29 gigawatts of geothermal resources that, if fully realized, could help to avoid yearly release of .73 gigatons of CO2e.

The Indonesia Ministry of Finance established a geothermal fund for risk sharing with more than $300 million in funding to mitigate resource risks in early stage geothermal development. In addition, the World Bank has raised $150 million for the Global Geothermal Development Plan. The Department of State has proposed a geothermal risk reduction program that seeks to utilize these idle funds to support exploration drilling and insurance instruments for geothermal production drilling risk to accelerate the financing of geothermal projects in Indonesia.

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