Germany extends US$534 million loan for Indonesian geothermal projects

Development sites identified in Aceh.

The documents providing the grants and soft loans were signed in Jakarta yesterday by German Ambassador to Indonesia Georg Witschel and Indonesia’s Debt Management Director Robert Pakpahan.

Pakpahan said a financial program worth US$534 million was allocated to finance Indonesia’s geothermal energy development program Witschel said the loan was allocated to help finance Indonesia's effort in developing geothermal energy, adding that Germany has been prepared to do so since 2010.

He said a project site has been identified in Seulawah Agam, Aceh province. The program will also help Indonesia explore for geothermal energy deposits in other areas.

Indonesia has the world's largest geothermal energy reserves estimated at 27,000 MW. The government is now seeking assistance from private sector and foreign investors to tap this potential.