Indonesia sets aside $38M for geothermal development

Indonesian Energy and Mineral Resources Ministry has set aside us$39 million to mitigate risks for the development of geothermal projects.

Indonesia's energy minister Darwin Zahedy Saleh told the Jakarta Post that the compensation was needed for encouraging investments for development of the geothermal power plants in the country.

The country has 40 per cent of the world's geothermal reserves, however, its development has not met expectations, according to Saleh.

To date, the country has produced only 1,189MW or 4 per cent of the total potential, the minister said.

Apart from fund for mitigation of risks, the Indonesian Government has also ordered state-owned electricity company PLN to buy power from geothermal producers at a ceiling price of 10 US cents to end uncertainties.