Work Visit to Clear Geothermal Development Hurdles
MINISTRY OF ENERGY AND MINERAL RESOURCES
REPUBLIC OF INDONESIA
PRESS RELEASE
NUMBER: 298.Pers/04/SJI/2020
Date: 9 October 2020
Work Visit to Clear Geothermal Development Hurdles
CIWIDEY - Together with Head and members of Commission VII of House of Representatives of Republic of Indonesia (DPR RI), Director General of New, Renewable Energy and Energy Conservation (NREEC), FX Sutijastoto on Friday (9/10) made a work visit to geothermal power plant (PLTP) Patuha which is run by PT Geo Dipa Energi in Ciwidey, Bandung Regency, West Java Pronvince, on an area of 36.120 hectares wide.
Commission VII of DPR RI was on a mission to find out the various issues hampering the development of geothermal energy and to offer comprehensive solutions. Amid the high pressure situation due to the COVID-19 pandemic, this work visit is a manifestation of the government and DPR's seriousness to reduce Indonesia's dependency on fossil energy immediately and shift to new, renewable energy which are clean and environmentally friendly such as geothermal energy.
As a renewable energy source, geothermal energy plays an important role in the development of infrastructure and economy of the region near the geothermal potential and the country in general. Geothermal development blunts the effects of the fluctuations in world's oil prices and curbs the use and demand for oil imports in Indonesia. Therefore, this work visit is expected to give clear and comprehensive understanding about the obstacles or barriers to geothermal business which will be valuable for formulating a new, renewable energy bill. The work visit is also aimed at taking the aspirations of the people living near the geothermal business so that these aspirations can be followed up in the meetings of Commission VII of DPR RI.
PLTP Patuha uses geothermal energy which is clean and environmentally friendly. Investment on the power plant amounted to USD165 million, while the plant's COD started on 22 September 2014. Currently, it has an installed capacity of 55 MW and its electricity production improves the reliability of the Java-Bali grid with an additional supply of 460 GWh/year. The power plant can supply electricity to over 60 thousand houses. The use of geothermal energy can reduce greenhouse gas emissions by 367 thousand tonnes of CO2/year.
Director General of New, Renewable Energy and Energy Conservation, FX Sutijastoto, said that PT Geo Dipa Energi has planned to develop PLTP Patuha Unit 2. "Based on the development plan, PLTP Patuha Unit 2 will be ready for COD by 2023 with a capacity of 55 MW and investment amount USD179 million", said the Director General. The operation of PLTP Patuha also gives direct benefits to the surrounding communities through its Community Development program. In the period 2016-quarter 2 of 2020, PT Geo Dipa Energi has transferred Community Development costs of Rp11.96 billion which have been used to fund educational, social, health, and economic empowerment activities of the locals.
Besides contributing to community development, PLTP Patuha has also made a major contribution to the increase in the Local Revenue (PAD). PT Geo Dipa Energi has transferred Production Bonus directly to the Regional Government's Bank Account which uses have been prioritized for the people living near the power plant. PT Geo Dipa Energi of Patuha Area has in total paid its compulsory Production Bonus of Rp12.83 billion in the payment period 2014-quarter 2 of 2020 to Bandung Regency Government. Production bonus has been allocated to enable people living at the producing region to enjoy direct benefits of the geothermal power plant in their neighborhood.
"PT Geo Dipa Energi has also made a contribution in the form of Non-Tax State Revenue (PNBP) to the national government amounting to Rp3.77 billion in quarter 3 of this 2020", said Mr. Sutijastoto.
Before concluding the work visit to PLTP Patuha, DG NREEC said that the Patuha area shows the public how enormous geothermal potential managed in a geothermal power plant can exist harmoniously side by side with forest area, agriculture land, and local communities at the same time. PLTP Patuha is a small part of God's gift to the Indonesian people, especially those of Ciwidey, but this gift can also be enjoyed by those living in both Java and Bali islands in the form of clean electricity supply. (IY)
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