Has Jumbo Potential, This Year's Geothermal Investment Is Projected To Reach 8.7 Billion US Dollars

Minister of Energy and Mineral Resources Bahlil Lahadalia. (Photo: ANTARA)

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia projects that the investment value of Geothermal Power Plants (PLTP) in 2024 will reach 8.7 billion US dollars.

This is motivated by investment growth during the last 10 years which recorded an increase of 8 times.

The electricity capacity of PLTP reaches 18.5 percent of the total national renewable energy electricity or 3 percent of the total 93 GW.

"So it has grown 8 times, so that in 2024 it is estimated that investment in geothermal is USD 8.7 billion," said Bahlil on the agenda of The 10th Indonesia International Geothermal Convention & Exhibition (IRGCE) 2024 at the Jakarta Convention Center, Wednesday, September 18.

In addition to creating investment value, PLTP development also creates jobs for 900,000 people and contributes to the country of approximately Rp. 16 trillion.

"Not only the economic impact, PLTP has also contributed to reducing 17.4 million tons of CO2 per year in Indonesia," Bahlil continued.

Despite the significant increase, Bahlil said that the development of PLTP could not be separated from a number of challenges.

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 had reformed the Job Creation Law but licensing was still slow.

"It turns out that in our office, even chicken grows teeth, it 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.

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.