The Ministry of Energy and Mineral Resources (ESDM) is preparing a range of incentives to promote the development of geothermal energy. Eniya Listiani Dewi, Director General of New Renewable Energy and Energy Conservation (EBTKE) at the Ministry of ESDM, announced that the government is working on various new incentives for the Geothermal Power Plant (PLTP) sector. "Geothermal local content incentives will consider both downstream and upstream aspects. Additionally, the prioritization of renewable energy use for excess energy from PLTP will be regulated in the draft Ministerial Regulation on Power Purchase Agreements (PJBL) from renewable energy," Eniya told Kontan on Wednesday, 2 July. Eniya added that other support measures include the use of government drilling funds managed by PT Sarana Multi Infrastruktur to gather data on potential Geothermal Working Areas (WKP), such as WKP Waisano, Jailolo, and other locations. Currently, two WKPs from government drilling are being auctioned, namely WKP Cisolok Cisukarame in Sukabumi, West Java, and WKP Nage in Flores, East Nusa Tenggara. "The Ministry of ESDM is also conducting studies and coordinating with the Ministry of Finance to add fiscal incentives that can enhance the economic optimization of projects," Eniya explained.
PLN has announced plans to promote cooperation in the development of 9 Geothermal Working Areas (WKP) with a total estimated capacity of 260 megawatts (MW). The nine geothermal locations to be developed by PLN are Tulehu in Central Maluku, Atadei in East Nusa Tenggara, Songa Wayaua in South Halmahera, Tangkuban Perahu in West Java, Ungaran in Central Java, Kepahiang in Bengkulu, Oka Ile Ange in East Nusa Tenggara, Gunung Sirung in East Nusa Tenggara, and Danau Ranau in South Sumatra and West Lampung. According to the Ministry of Energy and Mineral Resources, geothermal power plant development reached 2,417.7 MW by 2023, an increase of 57.4 MW from 2022’s 2,360.3 MW. This year, the government aims to achieve an installed capacity of 2,472.7 MW.
