Record Details

Title Competent National EPC Company in the Field of Geothermal Industry to Support the Development of Indonesia
Authors Alex Dharma Balen, Chandra Sihombing
Year 2013
Conference Indonesian Geothermal Association Conference
Keywords
Abstract Development of geothermal industry as one of renewable energy has been launched by Government in its policies to meet the needs of energy demand in national development. Government through Presidential Regulation No. 5 Year 2006 has set a target of renewable energy in the national mix energy minimal at 17%. Geothermal energy itself as part of government\'s renewable energy has been projected in 2025 with the target of supply 4.4% of the national energy demand of 2,785 million Barrel Oil Equivalent (BOE). This target is expected to be more realistic because there are many obstacles found in upstream and downstream of geothermal development. Until now, geothermal power plants as existing downstream area and built already produce 1,341 MW. Geothermal power is generated from the transformation of geothermal projects worth as the effort of competent Engineering, Procurement & Construction (EPC) companies are to meet the project completion time that has been targeted, the reliability of plant built, meets the required performance and the health conditions of assured Safety environment. Many things can be obtained by the construction of Geothermal Power Plant (GPP) by a competent EPC company that is in addition to improving Nett Present Value (NPV) of Wilayah Kerja Pertambangan (WKP) owner in this case as project owner, the other impact is the fulfillment of energy demand in each sector is increasingly increased in accordance with the national economic growth while reducing fossil fuel certainly. Development of geothermal industry is expected to reach a total installed capacity of 6,141 MW by 2025, so there is 4,800 MW of capacity that needs to be established by the competent EPC companies for 12 years. So, it is clear that the EPC sector will continue to be very dominant in the value chain of the geothermal industry development. With the increasing need for accelerating infrastructure development to encourage economic growth in Indonesia, there is no doubt that the EPC sector is in a favorable position. Capability of EPC companies shall enhanced in order to face the multiple executions of EPC projects. How to align and set-up different deliverable of EPC projects in terms of scope, schedule, cost, quality and Health, Safety & Environment (HSE) as the main purpose. How to survive in any stage of EPC development is more important than constrains itself. EPC companies must find its own strategic, various ways to solve their specific problems in geothermal multi-project scenario.
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