Geothermal energy in Indonesia

The World Bank will be working with Pertamina Geothermal Energy (PGE) – a subsidiary of state-owned company Pertamina – to boost power generation capacity by up to 150 MW in geothermal fields in Ulubelu, South Sumatra and Lahendong, North Sulawesi.

Due to the country’s volcanic geology, Indonesia is the world’s third-largest producer of geothermal energy after the United States and the Philippines. The country recently unveiled plans to become the world leader, investing almost $16 billion in renewable power generation and infrastructure over the next 15 years. The plan calls for 44 new geothermal plants by 2014.

Indonesian Vice President Boediono invited Australian investors to invest in the country’s energy sector by setting up geothermal energy plants, tapping the country’ s enormous geothermal deposit to generate power.

The Indonesia’s assistance commitments and official invitation to Australian investors was conveyed by Boediono to Australian Energy Resource and Tourism Minister Martin Ferguson during their meeting at the VP’s office, Yopie said.

Yopie said that Indonesia and Australia governments put great interests in developing the environment-friendly energy as geothermal energy requires brand new technologies and techniques. Both ministers agreed to share knowledge and expertise in developing geothermal energy.

Geothermal energy would significantly contribute to the country’s second phase mega power plant project with total capacity of 10,000 MW. Indonesia has the world’s largest geothermal deposit that may generate power up to 29,038 Megawatt, but as of now it only produces 1,189 Megawatt of electricity.