Geothermal in Indonesia

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As an archipelago country, Indonesia is located in a long 700km of plate boundary.  This plate has formed numerous active volcanoes along the country and generated tectonic movements, which have caused an increase of large concentration of high-temperature geothermal system along the area. 

This advantage makes Indonesia amongst the countries with the biggest supply of Geothermal Energy, in fact it is speculated that Indonesia possesses close to 40% of the world’s viable geothermal resources.  At least 70 exceptionally large geothermal fields and prospects as well as hundreds of smaller ones have been indentified in Indonesia; the combined potential estimated at some 27,000 MWe of electricity.

The abundant supply of Geothermal Energy Indonesia makes Geothermal Energy an important resource for the country’s increasingly growing need for energy.  Between the early 1980s until the late 1990s Indonesia’s growth of Geothermal Energy exploitation had been rapid and promising; however the devastation of Indonesia’s 1997 financial crisis has brought everything to a halt.  Today, despite its major downturn during crisis, government’s positively changing policies and regulations have started to revive the geothermal industry’s breath.

The future development of Geothermal Energy exploitation will mainly rely on constructive actions taken both by government and Independent Power Producers (“IPP”).  With a strong commitment from both parts, the tremendous geothermal potential in Indonesia can be unlocked and optimized for the need of Indonesia’s next generation.