Indonesia has a huge potential for investment in renewable energy, especially for waste and geothermal energy, according to the Energy and Mineral Resources Ministry.
“There are 13 regions in Indonesia which have geothermal energy potential,” the ministrys Director of Geothermal, Yunus Saefulhak said in a discussion held here, Monday.
The regions have the potential to produce 9.6 gigawatt of geothermal energy, with basic cost of production (BPP) lower than the national BPP, making it more economical.
The potential regions are East Nusa Tenggara, Aceh, papua, South Kalimantan, South Sulawesi, Maluku, Bangka Belitung, Riau, West Sumatra, and West Nusa Tenggara.
Other renewable energy resources across the country are expected to produce 200 GW of energy, thus the government has prepared a scheme to provide incentives for investors.
Currently, some investors have expressed their interest to develop renewable energy in Indonesia.
Under the ministerial decree 12/2017, state-run electricity firm PT PLN would have to use renewable energy in a bid to improve efficiency and reduce its price to consumers.
The renewable energy would be bought from power plants under the mechanism of fixed price or direct appointment. PLN would have to operate renewable energy power plants with a capacity of 10 MW.
Yunus said, development of renewable energy would need closer coordination with other ministries and institutions, for instance, to provide its land and environmental impact assessment (Amdal).
The development is expected to improve national competitiveness in energy sector, he said.