| Abstract |
Back in mid 80 and early 90, the government of Indonesia started with utilization of geothermal resources as an indirect use to produce electricity in order to support the power requirement. The demand of electricity has rapidly increased approximately 7% per year. During the period, the fossil fuel was still main consumption to generate the electricity, but, it has been noted that the fossil fuel as a non renewable energy, has also decreased rapidly and therefore the geothermal resources has become an important resources to generate electricity in the past 10 years. In early 90, the geothermal community saw the need to establish a non governmental organization in order to support the geothermal development. in early 1991, Asosiasi Panas Bumi Indonesia (API) or Indonesia Geothermal Association (INAGA) was established with its main function is as the partner of government, developer and other institution including universities to assist the government and other stake holder in accelerating the geothermal development. At the beginning, through the presidential decree no. 22/1981, Pertamina, as the State Owned Enterprise was appointed to carry out all the geothermal development in Indonesia. The first Geothermal Resources was successfully developed by Pertamina at Kamojang Geothermal Working Area and fully operational back in 1983. But then, for the rest of Geothermal Working Area that was given to Pertamina, It had required a huge financial commitment that made impossible for Pertamina to develop alone. Pertamina then introduced a Joint Operating Contract (JOC) model that gave an opportunity for the private sector to develop some of the Pertamina Geothermal Working Area such as Drajat block by Chevron and Wayang Windu block by Star Energy. After the world crisis in 1998, with new government, the law on geothermal which is Law no. 27 Year 2003 was issued and signed by the President of The Republic of Indonesia. However, the government regulation no. 59 that regulated all geothermal matters from survey, exploration up to the tendering process was just issued in 2007. On January 2010, The Presidential Decree no. 04/2010 was issued regarding the 2nd fast track of 10,000 MW electricity. Out of 10, 000 MW, the government has decided that 49 % should be from geothermal resources which is equal to 4900 MW. Then in 2012, the vision 0f 25/25 was also introduced by government, that was interpreted as 25 % of energy need by year 2025, must be from geothermal resources and in other word, approximately additional 9000 MW of electricity should be able to be developed and produced from geothermal resources by 2025. The paper is intended to share and to update comprehensively all the geothermal matters in Indonesia including all related regulations, current status and also challenges that are being faced by the government and developers. |