The Geothermal Program Government Drilling Project In NTT Will Be Auctioned

Director of Geothermal at the Directorate General of New Renewable Energy and Energy Conservation (EBTKE) Harris. (Photo: Doc. Antara)

Director of Geothermal at the Directorate General of New Renewable Energy and Energy Conservation (EBTKE) Harris said that in the near future he will auction off a geothermal project in Nagekeo, East Nusa Tenggara Province, as a result of the Government Drilling program.

"The highest risk of geothermal projects is during exploration because the cost can reach 5 million US dollars per well, so the government responds with government drilling where the government drills its own before it is auctioned off to the private sector, and this has been done in Nagekeo and will be auctioned off in the near future," he said. from Antara, Wednesday, November 30.

He said, at a cost of 5 million dollars per well it would not necessarily have results, so the risk is very high for developers.

The drilling of geothermal exploration of the government drilling program in Nagekeo, he said, was carried out by third parties at government costs.

With this program, the government hopes to be able to attract investors in developing geothermal for WKP in Indonesian territory.

Regarding the price fixing problem between the developer and PLN, he said, there was already Presidential Regulation Number 112 of 2022 which was issued in September and it was also regulated about Geothermal.

With Presidential Decree No. 112 of 2022, he hopes that the potential for geothermal in South Solok managed by PT Supreme Energy Muaralaboh will soon enter phase II.

"Now the Geothermal Muaralaboh has only produced 86 megawatts of the potential of 220 megawatts and with this Presidential Regulation unit II it can run smoothly," he said.

He said the benefits of geothermal are not only about electricity but also Non-Tax State Revenue (PNBP) of 32 percent for producing regions.

In addition, there are also production bonuses and Corporate Social Responsibility (CSR) as well as other benefits that can be obtained by the community.

"If there is potential like in South Solok, it has the potential to be developed with various benefits," he said.