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Red tape hampers geothermal energy development
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Environmentally friendly – Two workers inspect high-pressure pipelines at
the Lahendong geothermal power plant in Tompaso, Minahasa, North Sulawesi, on Sept.26. (Antara/Adwit B. Pramono)
D
espite Indonesia’s significant geothermal energy potential, industry players have been discouraged to invest in the sector due to excessive red tape in the country, an expert said on Sunday.
Institute for Essential Services Reform executive director Fabby Tumiwa said regional regulations – a result of political decentralization – posed challenges for investors to develop geothermal energy.
“It can take years for investors to obtain a permit for exploration. Those of them who initially plan to finish their projects in five years are discouraged because they have to bear extra costs as a result of delayed projects,” he said during a radio talk in Jakarta.
Meanwhile, Rida Mulyana, the energy and mineral resources director general for renewable energy and conservation, said she was aware of the problem but it was out of the ministry’s control.
“Two-thirds of the time needed to obtain permits is spent at local government, outside of the ministry’s control,” he said.
(Read also: Govt prepares feed-in tariff mechanism to boost geothermal energy)
However, the ministry is committed to speeding up the permit process, said Yunus Saefulhak, the Energy and Mineral Resources Ministry's director of geothermal energy.
“Previously, there were 29 permits from the energy and mineral resources ministry in relation to geothermal energy, but now the number of permits has been slashed to five,” he said.
Currently, geothermal energy makes up 1,400 MW of the country’s total installed power plant capacity of about 55,000 MW. (win/jun)
