Green Energy Licensing is Complicated, Bahlil Complains to Jokowi

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia reported that Indonesia is the country with the largest geothermal potential in the world of 40 percent or the equivalent of 24 GW.

Bahlil also said that geothermal growth in Indonesia has reached 2 times in the last 10 years. However, Bahlil said that there are still several main challenges that must be faced in optimizing geothermal energy in the country.

Bahlil said, one of the challenges in energy development in Indonesia is the slow process of investment licensing. In fact, he said, while still serving as Minister of Investment, the government has reformed the Job Creation Law but licensing is still slow.

"It turns out that in our office, chicken grows teeth will be difficult. Why do people invest in taking care of permits for 3 years. RKPPR, Amdal permit, location permits can be 2 to 3 years, entering KESDM playing the goods again," he said in his remarks on the agenda of the 10th Indonesia International Geothermal Convention and Exhibition (IIGCE) at the Jakarta Convention Center (JCC) Wednesday, September 18.

It does not stop there, the exploration process also takes a long time so that the entire process of building a Geothermal Power Plant (PLTP) can reach 6 years, or exceed the leadership period of the head of state.

"So sir, it is only the 6th year to build the construction, so the presidential period of one term is more. Just imagine, sir. So, it will be difficult for us to accelerate towards 2060 net zero emissions," he said in front of Jokowi.

Bahlil also asked the head of state for permission to cut licensing terms and times to accelerate investment in the energy sector.

For this reason, he asked Investors not to hesitate to invest in the energy sector because this licensing issue had been conveyed to President Jokowi and Elected President Prabowo Subianto.

"So, fellow investors, there is no need to hesitate, I have reported with President Jokowi and also I have reported to the President-elect Prabowo," he continued.

Bahlil appealed to investors not to hesitate to invest in Indonesia because it would be fully supported by the president.

Investors, he said, only need to bring technology and capital or capex because the market is already available.

"If there is a problem in the field, we will ask the National Police Chief and the ATR Minister," said Bahlil.