The two wells are located in the middle of a coffee plantation in the sub-district of Semendo, in the regency of Muara Enim.
"Development of the two wells will start this year to generate power for rural electrification in the area," South Sumatra Governor H Alex Noerdin said here on Wednesday.
Indonesia has the largest geothermal reserves in the world and according to Alex, South Sumatra holds most or 70 percent of the country`s known geothermal reserves.
The natural wealth has so far been left utilized, he said, adding, this year the provincial administration hopes to start exploiting it by phases.
Earlier, Permana, head of the promotion , licensing and investment board of South Sumatra, said the regency of Muara Enim has two geothermal wells -- in Tanjung Sakti and Rantau Dedap - respectively with potential reserves of 225 MWe and 835 MWe.
The regional administration has offered investors to develop five well known to have geothermal reserves -- Tanjung Sakti, Rantau Dedap, Lumut Balai, Tanjung Sakti, and Danau Ranau, but investors have been interested only in the ones in Tanjung Sakti and Rantau.
Success in the development of the two wells is expected to attract more investors in developing other reserves, Permana said.