PUBLIC POLICY ANALYSIS: STYLE AND POLICY DIRECTION OF GEOTHERMAL ENERGY IN INDONESIA

• Main Author: DANIA (NIM 29115374), RAHMI
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/30155
• Institution: Institut Teknologi Bandung

Geothermal is a one of renewable energy source which expected provide a substantial contribution to the primary energy mix in Indonesia. Indonesia geothermal potency spread along the path of active volcanoes (Ring of Fire), that if developed as electricity energy will become an environmentally friendly and also sustainable energy source. Indonesia geothermal potential that is estimated to reach 28,579 MW, consist of 11,073 MW resources and 17,506 MW proven reserves. Unfortunately, geothermal potency is not fully utilized, whereas the Road Map for Geothermal Energy in Indonesia as established by Government has set the target through its vision 25/25 that by year 2025, 23% of Energy Mix must be from New and Renewable Energy and 5% out of 23% or 7241, 5 MW must be from Geothermal Energy especially for electricity. <br /> <br /> Current installed capacity of Geothermal Power Plant until 2017 just reach 1.643,5 MW or 5,7% of the total potential. If we compare with geothermal utilization scenarios especially for electricity based on the target of National Energy Policy until 2025 is equal to 7241, 5 MW or 25, 3% of the total potential. So in other words, the government must pursue the shortage of 5598 MW in order to fulfill the target of National Energy Policy within the next 8 years. <br /> <br /> Therefore, this research is focus on how the government and other stakeholders work together in implementing the policy to meet the targets and also consider the role of geothermal resources through various regulation, institutional support, research and development support, and relationship of each activity made by decision maker. After the enactment of Law No. 21/2014 on Geothermal, there are some changes in the concept and regulation points in the Act of Geothermal, such as (i) geothermal project is not categorized as a mining activities (ii) the guidance and supervision of geothermal business license which was formerly performed by the local government, turn into the authority of central government (iii) the existence of regulation concerning the use of geothermal for direct or indirect utilization (iv) the government's authority to perform exploration, exploitation and utilization that can be implemented by the State Owned Enterprises or Public Service Board (v) settings geothermal production bonus which is based on a certain percentage of the gross revenue from the first unit generates. <br /> <br /> However, the high risk level of geothermal development sector, technology and funding issues, plus the low price of fossil energy makes the price of Geothermal Energy difficult to compete with other source of energy and make Geothermal Power Plant installed capacity until 2017 only reach 5,7% of the total potential. Consequently, appropriate policies and regulations as well as the support of the community and local government become very important to accelerate geothermal development in Indonesia, for example concentration of geothermal development in the eastern area of Indonesia as one of the Government's effort to increase the electrification ratio in the region, especially areas with the local Electricity Supply Cost (local BPP) higher than the National BPP; data reliability regarding Geological, Geophysical and Geochemical information in determining the magnitude of potential; incentive scheme; strategies related to funding issues and certainty in legal aspect.