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Ngebel geothermal development gets green light from council

East Java will utilize a huge deposit of geothermal energy in Ngebel to help diffuse the prolonged power crisis in Java and Bali

The Jakarta Post
Surabaya
Wed, November 5, 2008 Published on Nov. 5, 2008 Published on 2008-11-05T10:35:17+07:00

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Ngebel geothermal development gets green light from council

East Java will utilize a huge deposit of geothermal energy in Ngebel to help diffuse the prolonged power crisis in Java and Bali.

Ngebel is located at the border of Ponorogo and Madiun regencies.

The energy-harnessing plan got the green light from the provincial legislative council in Surabaya on Monday. They endorsed a draft bill drawn up at a plenary session for the geothermal development project.

All factions at the legislative council gave their political support for the geothermal resource on a number of conditions: The exploration must prove it will positively impact on local people financially, and meet safety and ecological guidelines.

The joint democratic justice faction insisted on referring to Chapter 33 of the amended Constitution on natural resources, which states that the provincial government must rigidly regulate the exploration to ensure economic benefits for local populations.

"The energy exploration must comply with the bylaw which requires preliminary surveys and feasibility studies be conducted, and also that exploration permits are obtained and activities remain transparent. That way, investors will not become an *ATM' (automatic teller machine) for the bureaucracy through the permit issuance procedure," spokesman for the joint faction Daisy Margaret said at the plenary session.

She said her faction would closely monitor proceedings because the bylaw stipulates that the governor has major authority in overseeing the exploration.

The joint faction reminded the legislative council and the government about possible impacts the geothermal exploration could have on local people and the environment, saying "We must learn from the Lapindo mudflow disaster, which displaced thousands of people, damaged their assets and destroyed the environment."

Daisy said the investors are required to carry out a CSR program to empower local people and generate jobs for local workers once exploration begins.

Spokesman for the United Development Party (PPP) faction Mundjidah Wahab said the geothermal exploration had to be based on a comprehensive study and should be undertaken primarily to address power shortages in Java and Bali.

Sudono Syueb, spokesman for the National Mandate Party (PAN) faction, said the project should be given top priority, so that power shortages can cease causing losses to investors and consumers in the provinces.

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