Complex Licensing Procedure Hampers Geothermal Production

 
Kartini L Makmur, Robert Sidauruk
 
Despite being one of the world’s largest holders of geothermal reserves, Indonesia is still struggling to maximize the potential of this resource. Not surprisingly, the classic reasons being given are complex licensing procedures and objections from local communities as the main obstacles for the development of the geothermal sector.
 
About 40% of the world’s geothermal reserves are located in Indonesia, with more than 299 potential locations which could produce up to 28,000 megawatts of electricity. Unfortunately, according to Abadi Purnomi, Chairman of the Indonesian Geothermal Association (ASPBI), Indonesia’s current geothermal electricity capacity only stands at 1,300 megawatts sourced from 9 different geothermal locations.
 
Mr. Purnomi further said that the amount of installed geothermal electricity capacity is only 5% of the total geothermal potential possessed by Indonesia. Although Indonesia has become the third highest user of geothermal energy in the world, the number of operating geothermal electricity facilities is still far behind that of the United States.
 
“The installed geothermal electric capacity in the United States is more than 3000 megawatts,” informed Mr. Purnomi, in Jakarta on Monday.
 
Adding to the discussion, Tisnaldi, Director of Geothermal at the Minister of Energy and Mineral Resources, said that the difficulties in licensing processes are caused by the location of geothermal hotspots. According to Mr. Tisnaldi, geothermal hotspots are mostly located in conservation forests and as a consequence there are often problems with technical exploration and objections from local communities.
 
Mr. Tisnaldi took Nusa Tenggara Timur area as an example. There, local communities and non-governmental organizations are blocking the establishment of a geothermal power plant in their locality as it located in a conservation forest. This refusal, Mr. Tisnaldi informed, has made it impossible for any business to secure the necessary licenses.
 
“In fact, there is still a shortage of electricity in that area,” added Mr. Tisnaldi.
 
Mr. Tisnaldi also acknowledged the current complex bureaucracy for obtaining a license for geothermal electricity production. There are at least 51 licenses that need to be secured by a business before it can explore geothermal reserves. He added that the Government has started to make changes to the licensing process to make it easier for businesses to obtain the necessary permits.
 
“To make it easier, we will reduce the process to only 33 licenses,” said Mr. Tisnaldi.
 
(hot/kc)
 
Kartini L Makmur, Robert Sidauruk
 
Despite being one of the world’s largest holders of geothermal reserves, Indonesia is still struggling to maximize the potential of this resource. Not surprisingly, the classic reasons being given are complex licensing procedures and objections from local communities as the main obstacles for the development of the geothermal sector.
 
About 40% of the world’s geothermal reserves are located in Indonesia, with more than 299 potential locations which could produce up to 28,000 megawatts of electricity. Unfortunately, according to Abadi Purnomi, Chairman of the Indonesian Geothermal Association (ASPBI), Indonesia’s current geothermal electricity capacity only stands at 1,300 megawatts sourced from 9 different geothermal locations.
 
Mr. Purnomi further said that the amount of installed geothermal electricity capacity is only 5% of the total geothermal potential possessed by Indonesia. Although Indonesia has become the third highest user of geothermal energy in the world, the number of operating geothermal electricity facilities is still far behind that of the United States.
 
“The installed geothermal electric capacity in the United States is more than 3000 megawatts,” informed Mr. Purnomi, in Jakarta on Monday.
 
Adding to the discussion, Tisnaldi, Director of Geothermal at the Minister of Energy and Mineral Resources, said that the difficulties in licensing processes are caused by the location of geothermal hotspots. According to Mr. Tisnaldi, geothermal hotspots are mostly located in conservation forests and as a consequence there are often problems with technical exploration and objections from local communities.
 
Mr. Tisnaldi took Nusa Tenggara Timur area as an example. There, local communities and non-governmental organizations are blocking the establishment of a geothermal power plant in their locality as it located in a conservation forest. This refusal, Mr. Tisnaldi informed, has made it impossible for any business to secure the necessary licenses.
 
“In fact, there is still a shortage of electricity in that area,” added Mr. Tisnaldi.
 
Mr. Tisnaldi also acknowledged the current complex bureaucracy for obtaining a license for geothermal electricity production. There are at least 51 licenses that need to be secured by a business before it can explore geothermal reserves. He added that the Government has started to make changes to the licensing process to make it easier for businesses to obtain the necessary permits.
 
“To make it easier, we will reduce the process to only 33 licenses,” said Mr. Tisnaldi.
 
(hot/kc)
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