RI And New Zealand Agree On Geothermal Funding Commitment

JAKARTA - The Ministry of Energy and Mineral Resources (ESDM) and New Zealand agreed to extend cooperation in the geothermal field, which has been running since the 1970s.

The New Zealand government, through the Ministry of Foreign Affairs and Trade (MFAT), has committed to extending cooperation in the geothermal sector for the 2023-2028 period with a commitment of 15.64 million NZD or IDR 147.8 billion.

Minister of Energy and Mineral Resources Arifin Tasrif expressed his appreciation to the New Zealand Government for the cooperation in geothermal development that has been established so far.

"We are very grateful to have good cooperation with the New Zealand Government through the MFAT and the New Zealand Embassy. I hope that this established joint effort can accelerate the development of Geothermal in Indonesia and provide a sustainable solution to support the energy transition in Indonesia," said Arifin in Jakarta, Thursday, July 13.

Arifin emphasized that Indonesia's commitment to decarbonization was also driven through the focus of Indonesia's G20 Presidency and the achievement of the Bali COPACT which is the commitment of the G20 countries to the energy transition.

In addition, Indonesia is also predicted to need electricity of 1,942 TWh by 2060.

The challenge is the provision of electricity from renewable energy sources that are exploited, reliable, and sustainable.

"To increase the use of clean energy, Indonesia will build around 700 GW of renewable energy power plants, considering that Indonesia has abundant renewable energy sources, reaching more than 3,600 GW," he added.

According to Arifin, New Zealand also has many resources and experts in developing geothermal projects, including direct utilization and innovation in geothermal operations, such as the production of green hydrogen and carbon capture storage (CCS).

On the same occasion, New Zealand's Minister of Foreign Affairs and Trade Nanaia Mahuta said that PINZ's commitment was based on achieving until now and would further expand Indonesia's access to affordable, reliable, and clean energy.

"New Zealand's Aotearoa strengthens support for Indonesia's geothermal energy sector through further investment in the PINZ program. This collaboration will help reduce climate emissions, and benefit the IndoPacific region widely," said Mahuta.

The purpose of the PINZ program, Mahuta explained, is to increase the contribution of geothermal energy in realizing Indonesia's renewable energy targets through technical assistance and capacity building.

"This commitment of 15.6 million NDZ dollars will help Indonesia achieve its renewable energy target through the provision of technical assistance and capacity building in three main fields, namely, regulatory framework, geothermal exploration, and increasing the skills and technical capacity of the workforce," said Mahuta.