Jakarta, Aug 4 (Antara) - The Indonesian government will continue to explore sources of energy to achieve its targets for the new and renewable energy program, reduction of gas emissions and energy mix use.
One of the potential energy sources that can be developed to achieve the gas emissions and energy mix targets is geothermal, whose utilization continues to be encouraged by the Energy and Mineral Resources Ministry (ESDM).
The development of geothermal is part of the government's efforts to build new and renewable energy from geothermal power plants. This reflects the commitment made by the government during the COP 21 in Paris, December 2015.
"We will make efforts to reach the energy mix target of 23 percent in 2025 from new and renewable energy sources. This is not easy because until now, we have only achieved about 8-9 percent. Probably in 2019, we can achieve 12-13 percent. However, to achieve this target, we need to make extraordinary struggles," Energy and Mineral Resources Minister Ignasius Jonan stated in Jakarta, Wednesday.
Geothermal can be expected to contribute greatly toward Indonesia's electricity development. "Currently, geothermal electricity generating plants (PLTP) which have been in the commercial operation date (COD) or on stream, account for approximately 1,700 megawatts (MW). This is still small compared to the fact that Indonesia has large energy potentials, which reach 29,000MW. We will do our best to speed it up," Jonan said.
In order to achieve a capacity of 25 gigawatts (GW), the Energy and Mineral Resources Ministry will continue to encourage the geothermal working areas that have been in production. The ESDM Ministry will consider a fair economic price for electricity consumers and producers.
Minister Jonan hoped there would be support from this sector and from others, such as the Ministry of Finance and the Ministry of Industry. "I hope there will be support from the Ministry of Finance and the Ministry of Industry to reduce the import duty and other taxes for the development of new and renewable energy, especially in the geothermal sector," Jonan remarked.
Minister Jonan highlighted the matter at the opening of the 5th Indonesia International Geothermal Convention and Exhibition (IIGCE) 2017 at the Jakarta Convention Center (JCC).
The minister hoped that there would be new ideas to support efficiency and good productivity. "We hope the price of electricity will be able to compete with primary energy later," Jonan mentioned.
In the meantime, the Ministry of Finance has ensured its support for financing the development of the geothermal energy sector in Indonesia through the issuance of Finance Minister's Regulation No. 62/PMK.08/2017.
The Directorate General of Financing and Risk Management of the Ministry of Finance said on its website monitored in Jakarta on Friday that the PMK (finance minister's regulation) is an affirmation on geothermal infrastructure financing by PT Sarana Multi Infrastruktur.
Through the regulation, the Ministry of Finance is committed to the Ministry of Energy and Mineral Resources to coordinate with each other on the provision of geothermal data and information by using infrastructure financing facility to support the acceleration of the electricity sector.
A Memorandum of Understanding (MoU) has been drafted as a foundation for cooperation and coordination between the Ministry of Finance and the Ministry of Energy and Mineral Resources for the implementation of tasks, functions, and authorities related to the organization of such activities.
The provision of geothermal data and information is conducted by utilizing the geothermal infrastructure financing managed by PT Sarana Multi Infrastruktur.
The scope of cooperation among others includes the implementation of facilitation of geothermal data and information and the acceleration of geothermal utilization through the implementation of exploration.
In addition, the scope of coordination includes the management of the results of data supply and geothermal information activities, as well as coordination and harmonization for the supply of geothermal data and information.
Through the MoU, it is expected that cooperation and coordination between the two institutions can be established effectively, efficiently, harmoniously, and continuously in accordance with the prevailing laws and regulations.
This commitment is expected to accelerate the utilization of geothermal for electricity supply, in accordance with the government's target, to realize a new and renewable energy mix of 23 percent by 2025.
The government's energy mix target has, so far, not been achieved, as in 2015, it had reached only five percent, and in 2016, it was seven percent. Thus, Indonesia is determined to reduce its use of conventional fossil fuels and continues to promote new and renewable sources of energy and increase share of renewables in its energy mix to 23 percent by 2025.
According to Minister Jonan, the government is poised to achieve its target of increasing the share of renewables in its energy mix use by 23 percent for electricity and transportation in 2025.
"Indonesia is resolved to increasing its energy mix to 23 percent in 2025 in line with its commitment to reducing its greenhouse gas emissions it had made during the COP 21 conference in Paris in 2015," Jonan stated last January. Indonesia has also planned to reduce its emissions by 26 percent by 2020 and 29 percent by 2030.***3***(A014/INE)
EDITED BY INE(T.A014/A/BESSR/A. Abdussalam) 04-08-2017 23:34 |
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