British Petroleum will take part in the development of geothermal energy projects in Indonesia.
"BP in talks just now agreed to participate in the development of geothermal energy in Indonesia thus to increase our power capacity," said Indonesian President Susilo Bambang Yudhoyono.
President Yudhoyono said the agreement was the result of his talks with BP CEO Bob Dudley at Gedung Agung.
The president said so far geothermal energy in the country has not yet been exploited well despite the fact that the country has the world`s biggest reserves.
He said the energy source has not yet been developed well due to investment challenges.
President Yudhoyono said although incentives had been given the sector has not developed well. He said the oil
subsidy had also made the price of geothermal energy not competitive yet.
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