Realization Of The First Quarter Of Geothermal Production Bonus Reaches IDR 29 Billion

Director of Geothermal at the Ministry of Energy and Mineral Resources (ESDM) Gigih Udi Atmo. (Photo: ANTARA)

JAKARTA - The Ministry of Energy and Mineral Resources (ESDM) reported that the realization of the geothermal production bonus in 2023 reached Rp138 billion, while the realization in the first quarter of 2024 was Rp29 billion.

Cumulatively, the realization of geothermal production bonuses from 2014 to the first quarter of 2024 reached Rp929 billion.

Director of Geothermal at the Ministry of Energy and Mineral Resources (ESDM) Gigih Udi Atmo said, Indonesia is one of the countries that has a very large potential for geothermal energy sources, reaching 23.6 Gigawatts (GW).

"Meanwhile, what has been utilized is only around 11 percent of the total potential, namely 2,597 Megawatt (MW)," he said, quoted on Friday, September 6.

By utilizing geothermal as an energy source, he continued, it provides a very large variety of benefits, in addition to increasing the national new renewable energy mix (EBT), geothermal also has a positive impact on the community, through geothermal production bonuses through the Regional Government.

"The realization of the production bonus deposit for geothermal-producing regions is expected to encourage economic growth in the local area," Gigih continued.

Furthermore, Gigih said, the Ministry of Energy and Mineral Resources through the Directorate General of EBTKE has proposed the Directorate General of Regional Finance for the management of geothermal production bonuses in the guidelines for the preparation of the 2025 APBD.

"It is hoped that later with the update of the general guidelines, the use of the Geothermal Production Bonus can be right on target and synergized with other similar programs in the Regional Government," he said.

The arrangement regarding the geothermal production bonus is a mandate of Article 53 of Law (UU) number 21 of 2014 as outlined in Government Regulation Number 28 of 2016 concerning the Amount and Procedures for Providing Geothermal Production Bonuses, which are regulated more clearly in the Minister of Energy and Mineral Resources Regulation Number 23 of 2017 concerning reconciliation procedures, depositing and reporting of bonuses for geothermal production.

The provisions that have been regulated are as follows:

1. The priority amount for the use of production bonuses is allocated at least 50 percent for the community around the PLTP;

2. The Regency/City Government prepares provisions regarding the criteria for the community around geothermal-producing areas for the sub-district and/or village levels;

3. Utilization of production bonus revenue is prioritized for the infrastructure sector, including road construction, lighting (electric supply), providing clean water, waste management and other fields according to the needs of the local community.

Some of the benefits of providing geothermal production bonuses include increasing Regional Original Income (PAD), so that people, especially those around the geothermal working area (WKP), can benefit directly from the existence of geothermal entrepreneurial activities.

Other benefits are expected to form programs to improve the welfare of producing regions, help the Local Government program to accelerate stunting reduction and extreme poverty alleviation, encourage the growth of a sense of belonging to geothermal entrepreneurial projects, and the realization of harmonious relations between geothermal developers, local governments and the community.

The Reconciliation Activity for the Calculation of the Geothermal Concession Production Bonus is an activity that has been routinely carried out by the Directorate of Geothermal Crimes cq of the Directorate General of EBTKE of the Ministry of Energy and Mineral Resources.

"Reconciliations that are routinely carried out with an accountable system are carried out quarterly for WKP Existing and annual for WKP Geothermal Holder Permits (IPB)," he concluded.