REPUBLIKA.CO.ID, YOGYAKARTA - British Petroleum has agreed to participate in the development of geothermal energy in Indonesia, President Susilo Bambang Yudhoyono (SBY) said on Friday. The agreement was the result of his talks with BP CEO, Bob Dudley.

"BP in talks just now agreed to participate in the development of geothermal energy in Indonesia thus to increase our power capacity," he said at a press conference.

SBY said so far geothermal energy in the country had not yet been exploited well despite the fact that the country had the world`s biggest reserves. In Indonesian case, investment is a big obstacle in this sector. He said although incentives had been given the sector has not developed well. SBY continued, oil subsidy had also made the price of geothermal energy not competitive yet. He believes that geothermal energy is one of the future environmental friendly renewable energy sources.

SBY on the occasion also expressed appreciation to BP that had agreed to transfer 230 cubic feet of gas per day from its Tangguh field in Papua to domestic industries while the gas from the field had so far been exported. He said the government in the future must make efforts to re-negotiate its working contracts so that the gas produced by fields in the country could be sold to the domestic market.

"In our economic perspective, the government had actually conducted re-negotiations to make the gas produced in Indonesia not to be totally sold abroad which is certainly unfair and also incorrect," he said. "I respect the contracts made earlier but I also appeal to investors, business leaders in Indonesia to understand the situation in Indonesia. If the contracts are considered unfair, with a good will, wish to improve them and renew them," he said.

Ikuti Whatsapp Channel Republika