Indonesia: “In future, the auction of geothermal work areas will not be based on price" - Minister

Feed-in tariff for geothermal energy to be finalized this month (Jakarta Post)

(Courtesy CIA.gov)

The government is set to introduce a feed-in tariff mechanism this month to push down the huge costs and limit the risks of geothermal exploration, in efforts to reach the country’s target of generating 7,000 MW of electricity from geothermal sources, a ministry official has said.

The new policy aimed to provide security for investors as geothermal exploration accounted for 60 percent of the investment costs, Yunus Saefulhak, the Energy and Mineral Resources Ministry's director of geothermal energy, said Sunday.

“In future, the auction of geothermal work areas will not be based on price anymore, but according to the work program and exploration commitment,” he said.

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