REPUBLIKA.CO.ID, PADANG ARO -- The Indonesian government is making five breakthroughs to achieve the national target of generating 7,200 megawatts of electricity by 2025.
Director of Geothermal of the Ministry of Energy and Mineral Resources Yunus Saefulhak stated here on Thursday that the five breakthroughs include conducting the auction of five geothermal working areas in 2017, directing state-owned enterprises to conduct explorations, and reducing the licensing process.
Furthermore, the government will provide fiscal incentives to developers and participate in mitigating the risks of exploration of mineral resources.
The government has also shortened the licensing process from 29 licenses to five through the Investment Coordinating Board.
"The exploration or search process has the highest risk. Hence, the government will participate in mitigating it, so many investors will want to participate in the exploration of mineral resources," he remarked.
He said the national renewable energy target is 23 percent, with geothermal at 16 percent, or 7,200 megawatts by 2025.
"Currently, geothermal energy in Indonesia has reached 1,698.5 megawatts, or 1.7 gigawatts. Hence, it needs additional 5,500 megawatts to meet the 2025 national target," he noted.
A total of four thousand megawatts has been given to developers for exploration.
"A total of 1,500 megawatts will be developed through the implementation of the five breakthroughs," he stated.
Meanwhile, President Director of PT Supreme Energy pointed out that the highest risk in geothermal drilling occurred during exploration.
He highlighted that the government had two options to attract investors: to increase the selling price of electricity or to conduct exploration.
If the price of electricity produced by geothermal power plants rises, it will certainly attract investors to undertake geothermal drilling, as it is worth the risk.
With regard to the second option, he said the government will carry out the exploration of mineral resources, while the private sector will conduct exploitation, so that investors would not have to face a high risk of exploration failure.
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