Indonesia to re-bid Mount Lawu geothermal workng area

Pertamina Geothermal Energy has not started working on the project.

The Indonesian government eyes re-tendering the geothermal working area of Mount Gunung Lawu as Pertamina Geothermal Energy failed to commence work on the project, and eventually returned the area to the government.

According to Minister of Energy and Mineral Resources Ignasius Jonan, the company lacked either financial or technical capacity on pursuing the project. He added that the government is left with two options: re-tendering the work area or let the project be taken under PT PLN's wing.

PT Petarmina Geothermal Energy initially won the Gunung Lawu site and was supposed to begin working on it this year. The project's estimated power generation capacity is 165MW.