New fund for geothermal investments in Indonesia
The investment agency of Indonesia’s finance ministry will start a fund of around $302 million to finance the exploration of geothermal energy resources in Indonesia this year. Saritaon Siregar, the agency’s chairman, said this in an interview at a conference in Jakarta on June 20.
The investment fund is in line with Indonesia’s intention of lowering its dependency on expensive and environmentally unfriendly fossil fuels as a source for energy and electricity.
The fund of the finance ministry can be used by local governments to determine the geothermal potential in the area. When exploration shows good perspectives, local governments can put the area for bidding and investors that win should refund exploration funds to the finance ministry. Private investors can also apply for loans from the agency for geothermal exploration.
Indonesia is estimated to contain the world’s largest geothermal energy reserves. Around 40 per cent of total global potential in geothermal energy is located beneath Indonesian soil. Progress in its rate of production, however, is occurring at a very slow pace.
Today, Indonesia uses only four to five per cent of its geothermal capacity. The largest reserves of geothermal energy are located in the western part of Indonesia where energy demand is highest: Sumatra, Java and Bali.
The investment agency of Indonesia's finance ministry will start a fund of around $302 million to finance the exploration of geothermal energy resources in Indonesia this year. Saritaon Siregar, the agency’s chairman, said this in an interview at a conference in Jakarta on June 20. The investment fund is in line with Indonesia's intention of lowering its dependency on expensive and environmentally unfriendly fossil fuels as a source for energy and electricity. The fund of the finance ministry can be used by local governments to determine the geothermal potential in the area. When exploration shows good perspectives, local governments can...
The investment agency of Indonesia’s finance ministry will start a fund of around $302 million to finance the exploration of geothermal energy resources in Indonesia this year. Saritaon Siregar, the agency’s chairman, said this in an interview at a conference in Jakarta on June 20.
The investment fund is in line with Indonesia’s intention of lowering its dependency on expensive and environmentally unfriendly fossil fuels as a source for energy and electricity.
The fund of the finance ministry can be used by local governments to determine the geothermal potential in the area. When exploration shows good perspectives, local governments can put the area for bidding and investors that win should refund exploration funds to the finance ministry. Private investors can also apply for loans from the agency for geothermal exploration.
Indonesia is estimated to contain the world’s largest geothermal energy reserves. Around 40 per cent of total global potential in geothermal energy is located beneath Indonesian soil. Progress in its rate of production, however, is occurring at a very slow pace.
Today, Indonesia uses only four to five per cent of its geothermal capacity. The largest reserves of geothermal energy are located in the western part of Indonesia where energy demand is highest: Sumatra, Java and Bali.
