Indonesia: Geothermal Energy Development Lagging Because of Iinsufficient Incentives to Make High Exploration Risks Worth Taking

Poor policy framework hampers Indonesia's geothermal potential (Asian-Power)

(Courtesy CIA.gov)

While Indonesia possesses around 40% of the world’s geothermal reserves, development has not accelerated to full gear due to insufficient incentives to make the high exploration risks worth taking.

The government has been offering incentives, but analysts says these are still not attractive enough for many developers.

Regulatory and administrative hiccups further deter developers from undertaking projects, which could end up creating setbacks for the country’s commitment to reduce carbon emissions by 29% by 2030.

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