Geothermal energy has remained largely underdeveloped and underutilized in Indonesia, despite the many advantages it has to offer compared to currently widely used types of energy like oil, gas and coal.
Indonesia, however, needs to come up with fiscal incentives to turn these comparative advantages for geothermal into a significant contribution to the government’s plan to build by 2019 power plants to produce 35,000 megawatts of electricity.
Under the 2014 National Energy Policy, renewable energy must contribute up to 23 percent of Indonesia’s overall energy mix by 2025. Geothermal currently accounts for a small part of that mix, a mere 1,493.5 MW. The government plans to bring this up to 7,000 MW by 2025, which means building at a rate of 550 MW a year.
Geothermal power plants are environmentally sustainable. They leave no carbon footprint, and the only waste c...