Indonesia to exploit geothermal energy source for 29,000MW

Indonesia will relax export restrictions for geothermal development.

Energy and Mineral Resources Minister Jero Wacik said that such relaxation would only be provided for countries and companies with proven track records in geothermal development. He said that the government was still trying to increase domestic allocation in natural gas.

Among foreign oil companies harnessing geothermal power is Chevron Pacific Indonesia, which produces 636 megawatts in electricity from geothermal fields in West Java.

Susilo Siswoutomo, the deputy energy and mineral resources minister, said that geothermal energy can only be exploited for electricity with a potential of 29,000 megawatts in geothermal energy.

Indonesia produced 8,142 mmscfd in natural gas last year of which close to 50 percent was consumed domestically. Sitting atop two volcanic chains, Indonesia has the largest geothermal reserves in the world, with only 4 percent exploited.

To encourage geothermal development, the government introduced new regulation which provides better pricing.

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