Ministry of Finance encourages geothermal energy exploration

Ministry of Finance encourages geothermal energy exploration

Director General of State Wealth Isa Rachmatarwata is attending a media discussion in Jakarta on Wednesday (18/9/2019). ANTARA/Satyagraha/suharto

This program assists the government in new well exploration which is currently considered costly and risky
Jakarta (ANTARA) - The Ministry of Finance is encouraging exploration and investment in the geothermal energy sector by preparing risk mitigation through the Government Drilling program.

"This program assists the government in new well exploration which is currently considered costly and risky," Director General of State Wealth Isa Rachmatarwata said in a discussion in Jakarta, Wednesday. Investing in the country's geothermal energy is still a stumbling block since the private sector is reluctant to take a risk in exploring power sources, Isa noted.

Keeping that in mind, the government has formulated the so-called Government Drilling program aimed at mitigating risks in each exploration activity, he said.

This program involves three Special Mission Vehicles (SPV) of the Finance Ministry, namely PT Sarana Multi Infrastruktur, PT Geo Dipa Energi, and PT Penjaminan Infrastruktur Indonesia (PII).

The three public service bodies make applicative approaches and adopt industrial governance in finding geothermal energy sources. The measures include planning and budgeting, procurement, operation and execution.

After the energy sources are discovered, they can be offered to investors interested in developing geothermal energy, he said.

"When a well is found and is economically sufficient to generate electricity, it will be offered to parties that are willing to conduct explorations," he said.

He expressed the hope that the risk of geothermal energy exploration, which is currently considered costly and less attractive to investors, could be reduced.

"This does not mean that private companies are not allowed to find energy sources. They can do it but their numbers are not large if not zero. Therefore, the government is willing to take the initiative to ensure that investment does not run slowly," he said.

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