| Abstract |
In Year 2003, the Government of Indonesia issued a Geothermal Law No. 27 Year 2003. This new Geothermal Law delegates more authority to local government i.e. District and Provincial Government, in administering, awarding concession and supervising the development of geothermal resources in their territory. In accordance to this Geothermal Law, any investor who wishes to acquire a geothermal concession is asked to participate in a tender process. However, after the issuance of the Geothermal Law, there was no any new geothermal concession was awarded to investor until the issuance of new Presidential Decree No. 14 that regulates the tender mechanism and procedures in acquiring geothermal concession. Under this Presidential Decree, a geothermal concession can be announced for a tender after an initial survey and study had been conducted either by the Government or by a private company appointed by the Government. In order to give a positive signal to investors, the Minister of Energy and Mineral Resources has issued several Ministerial Decrees to regulate electricity price cap generated from geothermal energy. Currently, the GOI propose to revise Geothermal Law in order to improve the gap in development of the geothermal potential, which is now still under drafting and expected to be issued by mid 2014. This paper describes pros and conts of the basic issues, such as: data accuracy of survey and study, workability, fairness and risks to investors related to acquisition of geothermal concession in accordance to Presidential Decree. Experience as a participant to the first geothermal concessions called for a tender in accordance to the Presidential Decree No. 14, combined with investigation of other tenders subsequently since 2005 up to 2013, will also provide unique information. Then the paper will discuss the cap pricing policy of the geothermal power as seen from the Investor’s perspective, the Government’s Perspective and the Off-taker’s or the Buyer’s Perspective, in accordance to several revision of cap pricing regulations made by the GOI. Further more the paper will also discuss implementation of Exploration Geothermal Fund to promote development of the geothermal potential in Indonesia. Finally of course, the paper will address some ideas to make geothermal development more implementable in the country. |