Indonesia begins moves to amend Geothermal Law

Revision to optimize the utilization of geothermal energy. The Ministry of Energy and Mineral Resources has filed a draft bill at the Indonesian parliament to revise Law No. 27 of 2003 on Geothermal Energy. Commission VII at the House of Representatives has formed a Special Committee to further discuss the draft bill. Jero Wacik, Minister of Energy and Mineral Resources, said that as a renewable energy source, geothermal energy has great potential to contribute to electricity distribution in Indonesia. Indonesia has up to 40% of the world’s potential geothermal energy resources capable of producing 30,000 MW of electricity annually. Despite its great potential, the development of geothermal energy is currently being held back by cross-ministry regulations. This is a consequence of geothermal energy production being considered a mining activity. This has caused problems for exploiting geothermal hotspots in forest areas that requires permits from the Ministry of Forestry and Ministry of Environmental Affairs.