Dutch accused of dumping chemicals in Jakarta

RNW, 29 January 2012

Indonesia's Finance Minister Agus Martowardojo has accused the Netherlands and the United Kingdom of violating the Basel Convention against the dumping of chemical waste.

The minister told reporters on Saturday that customs had impounded 113 containers of hazardous and toxic waste at the port of Tanjung Priok in Jakarta, according to a report in the Jakarta Post.

The Dutch and British governments "should have reported the shipments to Indonesia because they contained hazardous and toxic waste" under the terms of the Basel agreement, which has been in force since 1992. The 89 British and 24 Dutch containers contained mainly scrap metal contaminated with poisonous chemicals.

The Jakarta government has said it will notify the British and Dutch embassies of the find, demanding an explanation for the incompleteness of the shipload's documents. The owner of the PT HHS company which attempted to import the scrap metal into Indonesia could face a 15-year jail sentence if found guilty, Environment Minister Balthasar Kombuaya said.

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The customs office foiled the attempted smuggling of 28,200 kilograms
of scrap steel allegedly contaminated by hazardous waste at the Tanjung
Priok Port on Saturday in Jakarta. (Antara Photo/Ujang Zaelani)

Full Steam Ahead as PLN Targets Geothermal Power

Jakarta Globe, Ririn Radiawati Kusuma,  January 06, 2012

An employee walking along a thermal pipe at the Kamojang geothermal
power plant near Garut, West Java, on March 18. State utility provider
 Perusahaan Listrik Negara is targeting an additional 135 megawatts of
electricity from three new geothermal plants. (Reuters Photo/Beawiharta)

               

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State-owned power producer Perusaahan Listrik Negara expects to generate an additional 135 megawatts of electricity from its three geothermal power plants that are set to go online this year as part of its plans to boost capacity across the nation.

Muhammad Sofyan, director of renewable energy at the state utility provider known as PLN, said on Friday that it expected to operate three new geothermal power plants this year. They include the 110 megawatt Ulubelu plant in Lampung, Sumatra; a 20 MW plant in Lahendong, North Sulawesi; and a 5 MW plant in Manggarai, West Flores.

Sofyan said the Ulubelu plant was expected to start operating by October. Pertamina Geothermal Energy will provide steam for the plant at a cost of 4.3 cents per kilowatt hour, he said.

PGE is a unit of state-owned oil and gas company Pertamina, and it provides steam at other PLN facilities in the country.

The Lahendong plant will similarly work with PGE, Sofyan said, and it should begin operating in February.

Sofyan said the Ulumbu plant would also become operational in February. PLN, he said, would provide the steam for the Ulumbu geothermal plant.

PLN is responsible for improving access to electricity and reducing power outages that are common in many parts of Indonesia.

The country’s electrification rate, which indicates what percentage of households have access to power, is forecast to increase to 75 percent this year from 71 percent last year, PLN said.

PLN is working to provide 20 MW of power from renewable energy sources on remote islands such as Mentawai, Riau and Bangka-Belitung.

Indonesia is an archipelago of more than 17,000 islands, and many volcanoes stretch across major islands such as Sumatra and Java along a range that makes it desirable to tap these geothermal sources for the production of electricity.

Renewable energy also includes production of electricity from water, wind and solar.

Indonesia, a nation of 240 million people, had power-generation capacity at as much as 28,462 MW as of the end of last year, according to PLN data.

Coal-powered plants account for around 42.2 percent of that capacity, with diesel-fired plants 23.7 percent, gas 22 percent, hydropower plants 6.7 percent and geothermal and other renewable energy at 5.4 percent.

President Susilo Bambang Yudhoyono has ordered the Energy Ministry to boost the country’s electricity capacity by implementing a 20,000 MW fast-track program. The program aims to boost the nation’s electrification rate to 80.24 percent by 2014.

Late last month, Yudhoyono inaugurated three coal-fired plants and broke ground on the upgrade of an oil refinery, facilities that are intended to help the country cope with rapidly rising demand for fuel and electricity.

Yudhoyono launched three power plants, two in Banten province and one in Central Java, via teleconference. The three plants have a total production capacity of 1,600 MW and are expected to consume 6.5 million tons of coal annually.

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Suspects Named in Indonesian Bridge Collapse Disaster

Jakarta Globe, Tunggadewa Mattangkilang & Farouk Arnaz, January 02, 2012

At least 18 were killed and 39 others injured when the the Mahakam II
Bridge in East Kalimantan collapsed. (Agency Photo)   

            

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"Bambang also said the police were also looking into the possibility of corruption being a factor in the shoddy construction of the bridges." Corruption in Indonesia? Surely that is not possible

Previous1Next

The police have named three suspects in the case of the collapse of a 10-year-old suspension bridge in East Kalimantan in November, an officer said on Sunday.

Comr. Gen. Sutarman, the National Police chief of detectives, said the three suspects had yet to be detained.

“Based on the results of the investigation and the evidence gathered, three people have been named as suspects by the East Kalimantan Police,” Sutarman said.

He identified them as Y.S., an official of the Kutai Kartanegara district public work office; S.T., a technical executor of the project; and MSF from Bukaka Tehnik Utama, the company in charge of the bridge’s maintenance and repairs.

He said the three suspects would be summoned for questioning at East Kalimantan police headquarters on suspicion of having violated two articles of the Penal Code pertaining to negligence leading to the loss of life.

At least 24 people died when the Rp 104 billion ($11.4 million) Mahakam II bridge, inaugurated in 2001, collapsed on Nov. 26. A dozen other people are still missing and feared dead.

Meanwhile, East Kalimantan Police chief Insp. Gen. Bambang Widaryatmo said that the suspects may be arrested after their questioning.

“We will summon them immediately and detain them,” Bambang said.

He added that the three suspects were named after the questioning of 57 witnesses, including five expert witnesses from five universities.

He said the investigation had been slow because some of the maintenance workers were among the victims and their equipment had sunk to the bottom of the Mahakam River when the bridge collapsed.

“We are also constrained because the experts who have been asked to provide explanations in relation to the collapse of the bridge are still awaiting the results of the analysis of several teams deployed from the concerned ministries to study the incident,” he said.

Bambang also said the police were also looking into the possibility of corruption being a factor in the shoddy construction of the bridges by studying all available documents, including the contract for the construction, signed in 1995.

“We are currently investigating suspicions of corruption in the bridge’s construction. For example, cables that should have been 100 centimeters long, were only 10 centimeters long,” Bambang said.

Meanwhile, Sri Wahyuningsih, a spokeswoman for the Kutai Kartanegara district, said that district authorities were continuing efforts to evacuate the victims and vehicles still believed to be at the bottom of the Mahakam River. The authorities will also lift the structure, a task expected to be complete by Feb. 17.

“There were three companies making offers and presentations [for the clearance contract], but we have yet to choose a winner,” she said.

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Indonesian Garbage Project Helps to Save the Climate

Jakarta Globe, Christiane Oelrich, January 01, 2012

A man perches on a makeshift raft on a river covered with trash as he
 searches for materials to recycle, north of Indonesia's capital, Jakarta
 in this file photo. Residents in Tangerang are taking trash collection into
their own hands. (Reuters Photo/Supri) 

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Tangerang. Crouched and concentrated, August and Karma rip open knotted plastic bags at the foot of a big pile of rubbish.

Yoghurt cups, paper packaging, plastic, pineapple rinds, cabbage leaves, chicken bones and the like fall out. The young Indonesian men begin sorting. Organic material goes to one side, and bottles, plastic and paper to the other.

“A super job,” remarks Karma, 23. “Finally, reliable work.” The two sort their rubbish and that of their neighbors, too. For the past year, the 325 families in Griya Serpong — a working class housing area of Tangerang, a city some 40 kilometers south-west of Jakarta — have been disposing of their garbage themselves.

Municipal garbage collection was never reliable, and the residents used to dump their refuse in a vacant field — a paradise for rats, flies, mosquitoes and snakes.

Everything is different now. The roofed garbage sorting facility is a source of local pride.

“It’s got a lot cleaner here,” notes Ulil Albab, the project’s honorary chairman.

“Nobody wanted to have anything to do with rubbish before. Now we bring school kids here and show them how to compost,” Karma says.

Residents built the facility with the help of BEST, a local non-governmental organization focusing on urban poverty and community development, and BORDA (Bremen Overseas Research and Development Association), a German non-profit organization that aims to improve the living conditions of disadvantaged communities and to keep the environment intact.

At a monthly cost per family of 12,000 Indonesian rupiahs, or a little over 1 dollar, August and Karma sweep through the alleyways of Griya Serpong with their moped and trailer every day collecting garbage — 400 kilograms of it.

They compost all organic refuse at the sorting facility. It is then sold along with the plastic, glass and paper.

Agathe, 35, has made a business out of rubbish. She collects discarded detergent and noodle bags. She and her girlfriends fashion colorful handbags and wallets from them.

When everything of value has been separated out of the housing area’s refuse, no more than 30 percent remains. It is taken to a tip.

BEST Director Hamzah Harun Al Rasyid is pleased. “It’s a win-win situation,” he says. “The housing area is cleaner, there are new jobs, and there is considerably less rubbish, so we’re reducing methane emissions from the garbage tips.”

Karma and August constantly turn over the compost pile, which aerates it. This helps prevent the formation of methane, a potent greenhouse gas that makes garbage tips a big contributor to global warming.

As Indonesia’s population grows rapidly, so do the piles of garbage that are produced by the country’s more than 240 million inhabitants.

While recycling is a booming industry — for example in Germany, where it generates some 67 billion dollars in revenues annually — almost all of the Indonesian garbage is incinerated or dumped in open tips.

About 1.8 million tons of garbage is likely to be produced daily worldwide by 2025, according to BORDA. In Indonesia, 62 percent of the refuse is organic and could be composted. But there is no large-scale sorting of refuse.

Facilities like the one in Griya Serpong are catching on. The twenty-first one is to be inaugurated in the near future, and many other communities are clamoring for their own.

“We estimate that each facility like this reduces methane by 132 tons a year,” said Jati Kusumowati, who works at the BORDA office in the city of Yogyakarta. “We think they ought to be promoted internationally as well.” One way to do this might be via the Clean Development Mechanism (CDM) set out in the Kyoto Protocol on climate change, which allows industrialized countries to meet their emission--reduction or limitation commitments in part by paying for emission cuts in developing countries.

A one-ton reduction in methane would earn about 13 to 16 dollars, according to Kusumowati.

But small projects such as the one in Griya Serpong would not clear the technical and bureaucratic hurdles necessary for them to be officially recognized. BORDA is now trying to get the requirements for small projects loosened.

DPA

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Dutch Unveil Latest Plan in War Against the Sea: a Massive Sandbar

Jakarta Globe, Nicolas Delaunay, December 26, 2011

The wind, waves and ocean currents, it is hoped, will drive the man-made
 peninsula of sand landward to replenish the coast of the Netherlands. 
(AFP Photo)   

          

Kijkduin, Netherlands. In its age-old war to keep back the sea, low-lying Netherlands has dumped sand onto a surface larger than 200 football fields just off the coast — and will wait for nature to do the rest.

The wind, waves and ocean currents are the next “engineers” in this innovative project that will see the transferred sand — all 20 million cubic meters of it — driven landward to form a natural barrier against the North Sea’s relentless onslaught. The elements have started moving the tip of the bar, which already almost touches land at low tide.

Over a period of 15 to 20 years, the sand will wash toward the coast, reinforcing beaches and existing sand dunes that help protect the Netherlands, more than a quarter of which lies below sea level.

“Under natural circumstances, the Dutch coast would erode away slowly,” said Leo Linnartz, an ecology expert who advised the project’s developers on behalf of the World Wide Fund for Nature. Without reinforcing fragile shores, floods would eventually be inevitable, he said.

Over the decades, the Dutch have developed world-renowned expertise in the field of hydro-engineering, notably in constructing dams, dikes and bridges.

Around 17,500 kilometers of embankment have already been built along its coast and rivers.

The new project was conceived by a group of experts commissioned by the Dutch government to help solve the country’s ongoing headache. It used dredgers to suck up ocean-floor sand 10 kilometers off the coast then dump it closer to land. Some of the huge machines were able to carry as much as 10,000 cubic meters of sand at one time.

If the experiment works, the sandbar project, situated between the seaside suburbs of Kijkduin and Ter Heijde near The Hague, will be replicated elsewhere in the country. And the system could even be exported.

“We used to do it in such a way that we used a lot of stones and concrete and things like that,” said Linnartz. “But nowadays we prefer to work together with nature, to cooperate with natural forces.”

The idea of strengthening the coastline with sand is not new, Linnartz said. But placing it off the coast and allowing nature to take its course is not only a fresh approach to the problem but less harmful to the environment than simply dumping more sand on the dunes, he said.

While traditional shoring up happens around every five years, the new plan based on the sand’s natural movement will last 15 to 20 years.

Agence France-Presse  

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Dike to house ‘blue energy’ plant

Afsluitdijk, The Netherlands

Dike to house ‘blue energy’ plant

RNW, 23 December 2011

Afsluitdijk, The Netherlands

The cabinet has approved funding totalling 20 million euros for sustainable energy projects on the Afsluitdijk, the 32-kilometre barrier that closed off the Zuiderzee from the open sea to create what is now the freshwater IJsselmeer lake.

The dike will house an innovative osmotic power plant, or ‘blue energy’ plant, which exploits pressure created when salt water passes through a membrane to mix with fresh water. Solar panels will also be mounted on the dike.

The sustainable energy funding comes as part of a renovation package to increase the safety of the Afsluitdijk, which was completed in 1932. In its present state the barrier can no longer guarantee protection against high water, the Infrastructure Ministry says.

The surface of the dike is to be reinforced along its entire length, and the sluices that drain excess water from the IJsselmeer into the sea will be given a 200-million euro overhaul.

The regional authorities have also investigated opportunities to use the dike for recreational purposes. The renovation project may also include the construction of a marina. At present the dike serves as a road link between the west and north of the country.

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German village generates 321 percent more renewable energy than it needs, earns millions selling it back to national power grid

Carrots in the car park. Radishes on the roundabout. The deliciously eccentric story of the town growing ALL its own veg

Durban? What a waste of time!

  (Photo: RNW)

German village generates 321 percent more renewable energy than it needs, earns millions selling it back to national power grid

Natural News, Monday, December 19, 2011 by: Ethan A. Huff, staff writer

German village of Wildpoldsried generates 321 percent more renewable
energy than it needs

(NaturalNews) Developing a renewable energy system that creates energy independence and even a considerable new source of revenue is not some sort of sci-fi pipe dream. BioCycle reports that the German village of Wildpoldsried, population 2,600, has had such incredible success in building its renewable energy system. Wildpoldsried generates 321 percent more renewable energy than it uses, and it now sells the excess back to the national power grid for roughly $5.7 million in additional revenue every single year.

By utilizing a unique combination of solar panels, "biogas" generators, natural wastewater treatment plants, and wind turbines, Wildpoldsried has effectively eliminated its need to be attached to a centralized power grid, and created a thriving renewable energy sector in the town that is self-sustaining and abundantly beneficial for the local economy, the environment, and the public.

You can view some amazing pictures of the Wildpoldsried village at: (http://inhabitat.com/german-village-produces-321-more-energy-than-it-needs/wildpoldsried-germany).

Possessing admirable vision for the town and strong motivation to see the project as a whole succeed, Mayor Arno Zengerie has led the way for many years in making Wildpoldsried's energy independence efforts a success. As far back as 1997, the village has been investing in building and promoting new industries, maintaining a strong local economy, generating new forms of revenue, and ultimately staying out of debt. And the best way it saw fit to accomplish much of this was through the implementation of self-sustaining, renewable energy technologies.

Not only did Wildpoldsried successfully reduce the amount of time expected to generate the necessary funds to build local treasures like a sports hall, theater stage, pub, and retirement home with the revenue generated by its thriving renewable energy sector -- the village has already successfully built nine community buildings, with more on the way -- but it also achieved all this and more without going into debt.

"We often spend a lot of time talking to our visitors about how to motivate the village council (and Mayor) to start thinking differently," said Mayor Zengerle, who now gives talks around the world about the successes of his award-winning village. "We show them a best practices model in motion and many see the benefits immediately. From the tour we give, our guests understand how well things can operate when you have the enthusiasm and conviction of the people.

Be sure to read the full, inspiring account of Wildpoldsried's history of, and successes in, renewable energy at: (http://www.jgpress.com/archives/_free/002409.html).

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Carrots in the car park. Radishes on the roundabout. The deliciously eccentric story ofthe town growing ALL its own veg

Durban? What a waste of time!

  (Photo: RNW)

Bridge falls while under construction

The Jakarta Post, Jakarta | Mon, 12/12/2011

Collapsing trend: Workers remove pieces of the collapsed
 Marunda- Cilincing bridge in North Jakarta on Sunday. The bridge,
which was due to be operational by end of this month, collapsed
 early Sunday. Nobody was injured, but the incident raises questions
 about the quality of workmanship. Antara/ Reno Esnir

A bridge connecting Marunda and Cilincing in North Jakarta collapsed while still under construction early on Sunday, another example of shoddy infrastructure in the wake of the fatal collapse of the Kutai bridge.

No deaths or injuries were reported in the incident, but financial losses are expected to have reached to Rp 750 million (US$83,250).

City officials were quick to begin pointing the blame.

“This is purely human error. The quality of the concrete blocks should not be questioned, because they are top-notch,” Jakarta Public Works Agency deputy chief Novizal told The Jakarta Post on Sunday.

Once complete, the bridge is expected to be 620 meters long. Around 70 meters of the bridge still needs to be completed. The project is expected to be finished by the end of December.

Novizal said the incident had occurred when construction workers were attempting to place a sixth 30.8-meter girder on top of the foundation pillars.

“The sixth concrete block rolled sideways and fell on the block next to it, creating a domino effect,” he said.

The Marunda bridge incident comes in the wake of the collapse of the Kutai Kartanegara bridge in East Kalimantan, which killed at least 21 people and left 15 unaccounted for.

On Dec. 6, the 70-meter Bamba bridge over the Saddang River in Pinrang regency, South Sulawesi, collapsed only a month after it was opened. Two days later, the 800-

meter Pikhe bridge in Wamena in Jayawijaya district, Papua, collapsed.

On Sept. 16, 2010, a 100-meter section of the Jl. R.E. Martadinata, which connects Ancol and the Tanjung Priok port in North Jakarta subsided as a result of seawater abrasion.

Urban analyst Nirwono Joga said he suspected foul played a part in the Marunda bridge collapse.

“The real reason [the incident occurred] is because contractors and government officials always cut corners on construction projects,” he told the Post.

On average only between 50 and 60 percent of funds earmarked for construction projects ends being used to pay for the actual construction, Nirwono said.

The remainder is used for administrative purposes, such as the wheeling and dealing needed to get the project approved by the City Council or House of Representatives, he said.

Nirwono urged government officials and contractors to stop corruption in infrastructure construction projects.

“We should not be playing with public safety. Things must change. The government should have the will to do it,” he said.

However, a civil engineering professor from Bandung Institute of Technology (ITB), Rizal Tamin, said he was convinced that human error could have been the main factor in the Marunda bridge collapse.

“This could have been a result of a lack of discipline in implementing the standard operating procedures,” he said. (mim)

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Antara News, Tue, November 29 2011 

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Illustration of geothermal project.
(ANTARA files/Ujang Zaelani)

Padang Aro, West Sumatra (ANTARA News) - The geothermal drilling in Solok Selatan, West Sumatra, which will be utilized as power plant by PT Supreme Energy was scheduled in 2012.

"Under the contract, the geothermal drilling in Solok Selatan will be carried out in the first quarter of 2012 with an initial plan of seven points in Pekonina, Pauh Duo sub-district," head of the Solok Selatan energy and mineral resources agency Yulian Efi said in the company of energy section chief Zilhamri said in Padang Aro on Tuesday.

Yulian said right now Supreme Energy with the assistance of the regional administration is opening 70 hectares of land which would be continued by road construction.

"We hope that in the five years of explorations, PLN would provide power smoothly," he said.

He said under the mining working area issued by the energy and mineral resources minister in 2009, the geothermal power which would be produced in Solok Selatan would reach 400 megawatts, while the geohermal area in Liki Pinangawan would reach 62,300 hectares.

In the meantime, according to the result of the initial survey by PT Supreme Energy and the Bandung Institute of Technology (ITB) in 2008, there were 30 points stretching from Balun, Koto Parik Gadang Diateh sub-district to Liki Pinangawan, Pauh Duo sub-district, of geothermal power in Solok Selatan with a capacity of 600 megawatts.

Yulian also said that PT Supreme Energy planned to produce 1,120 megawatts of power in 2014 and 2015, and 110 megawatts in the first stage. And in the following year production will reach 110 megawatts.

"Under the contract, the power which will be produced reached 2x110 megawatts in 30 years," he said.

He said in December or January 2012, the Solok Selatan administration will introduce the development of geothermal power into electric power to the general public.

Besides Solok Selatan, the potential of geothermal power in West Sumatra covers seven regencies, including Pasaman, Solok, Pasaman Barat, Limapuluh Kota, Tanahdatar, Agam or 17 points producing electricity of 1,656 megawatts.

Editor: Priyambodo RH

9 bridges in East Java in critical condition

The Jakarta Post, Jakarta, Tue, 11/29/2011

Nine bridges in East Java are in critical condition, according to a national road construction and maintenance unit.

East Java Public Works Agency’s Bina Marga unit chief, M. Dachlan, said that the bridges included Porong Bridge in Sidoarjo, Semampir Bridge in Kediri, Kali Brantas Bridge and Lespadan Kali Brantas Bridge in Nganjuk, Gadjahmada Bridge in Mojokerto, Wringinanom Bridge in Probolinggo and Sembayat Bridge in Gresik.

Dachlan said that the East Java administration had set aside Rp 10 billion (US$1.09 million) to investigate and repair the bridges.

“The funds come from the central government as the bridges belong to them. But we will also disburse funds for minor maintenance work,” Dachlan said Tuesday as quoted by tempo.co.

Dachlan pointed out that the Lapindo mudflow in Sidoarjo had caused land subsidence, which went on to cause cracks in the bridge’s construction.

Most of the bridges were in critical condition because of foundation displacement, he said.

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Indonesia Works To Secure Lead in "Ring of Fire" Geothermal Market

Renewable Energy World, By Ivan Castano, Contributor , November 2, 2011    

Jakarta, Indonesia -- Indonesia is aggressively moving to build up its geothermal industry with plans add as much as 9,000 MW of installed capacity by 2025. However, industry observers say the Southeast Asian country's government must do more to attract foreign investment if it wants to achieve that target.

"The tenders are out there, they just need the investors to come in," says Paul Brophy, president and chief executive of geothermal consultancy GES, which is working with the Indonesian government to help boost foreign investment and develop the geothermal industry. "So far, some 20 to 30 concessions have been issued so there is still lots of room for new companies to come in and develop the resources."

Industry observers say Indonesia, with the world's highest number of active volcanoes, has the greatest geothermal potential in the so-called Ring of Fire volcanic region straddling the country as well as New Zealand, Philippines, Japan and the Eastern part of Russia. Of all those countries, Indonesia, Philippines and Japan have the strongest development potential, observers say.

However, Indonesia has more volcanic "hot spots" (some 265) and a more aggressive development scheme than the other countries. Developers are using these hot spots to drill holes that can produce steam from volcanic energy. So far, Chevron is the leading foreign developer in the sector but others including Indian industrial conglomerate Tata, Shell, Canada's Raser Technologies and Australia's Origin Energy are also looking to set up geothermal plants.

Investment Challenge

Brophy said the biggest stumbling block in the way to Indonesia's development dream is a dearth of foreign investment as the government does not want to finance the 9,000-MW build-up, estimated to cost $30 billion, on its own.

To do this, the government recently issued a law that would allow foreign developers to pursue their own projects as long as an Indonesian player receives a five percent stake in them. To meet this requirement, international developers must set up consortiums that include at least one Indonesian company, Brophy explained, adding that he thinks that the law will boost investment. This is because before, foreign companies were mostly restricted to partner with state energy group Pertamina if they wanted to build a geothermal project in Indonesia.

"They don't need to partner with Peternina anymore. They can go on their own as long as an Indonesian player has at least five percent equity in the project," adds one industry observer.

Jennifer Derstine, a renewable energy analyst at the U.S. Department of Commerce's international trade mission, agrees that the government is working to attract more international players. She adds that when the department of commerce launched a geothermal trade mission two years ago, the investment framework banned foreign companies from pursuing small geothermal projects on their own. However, that is now allowed and is expected to bolster interest from U.S. and other foreign companies to roll out projects.

"The law had reserved smaller-size development permits of geothermal plants under 10 MW for Indonesian companies. Now, the market is open to U.S. geothermal developers and investors," says Derstine.

"Uncompetitive" Tariffs

However, echoing other views, she says tariffs are still too low to make geothermal projects competitive.  Brophy says Jakarta is also working to address this issue. State electricity company PLN recently established a U.S. $0.097 feed-in tariff per kilowatt-hour (kWh) for geothermal plants, but the region is wiling to negotiate a higher price for projects located far from the power grid. However, some investors are concerned about whether debt-ridden PLN will ultimately be able to pay those prices as state coffers are already burdened with high subsidies for the energy sector, observers say.

Because building geothermal plants is expensive, with the ultimate capacity that can be extracted from them, uncertain, developers are looking for the highest possible tariffs and assurances that the projects will be profitable before jumping into the market. Brophy adds that the government is aware that tariffs must be more competitive and that it is likely to shift some traditional power subsidies into renewable energy to develop the geothermal space as well as other green technologies. 

The Indonesian tariff is lower than in the U.S. where developers are paid $0.10 to $0.12 per kWh. Development costs are much lower in Indonesia, however, Brophy says.

If all goes well — and barring a prolonged and deeper global recession — Brophy hopes Indonesia will be able to attract enough foreign money to meet its 2025 geothermal targets, which could ultimately make the country the world's biggest producer of geothermal power. But it will need to watch over rivals like the Philippines and Japan. The former is looking to install 3,000 MW by 2020, up from 1.95 MW now. And as it moves to diversify its energy matrix following its recent nuclear disaster, Japan could also draft ambitious plans to develop its "vast" geothermal resources, Derstine adds.

For now, eyes are on Indonesia as a potential leader in geothermal energy as long as it can get the funds it needs to meet its ambitious development targets.

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Hydro energy: not so sexy yet still reliable

Rangga D Fadillah, The Jakarta Post, Jakarta | Mon, 10/17/2011

Austria-based hydro energy developer Andritz Hydro suggested that the government, businesspeople and energy consumers in Indonesia pay more attention to the future development of hydro energy sources.

Company president director Josef M. Ulmer said Monday that the country had abundant hydro energy potential, around 78,000 megawatts (MW), but as of today utilization still stood at only around 4,500 MW.

“Hydro is the old lady of renewable energy. It’s not as sexy as solar energy, but it is one of the most reliable sources of energy, including in Indonesia,” he told reporters at a press conference on the sidelines of the World Renewable Energy Congress in Nusa Dua, Bali.

With a current electrification ratio of about 70 percent, hydro energy could be one of the best options for providing access to electricity in certain regions of the country, he said, adding that the future of hydro energy was very encouraging.

As reported earlier, the government and state electricity utility PLN were preparing the concept for the third phase of the 10,000 MW fast-track program. During this phase, most new power plants would use water for generating electricity.

Companies, households use Malang dam as garbage dump

The Jakarta Post, Jakarta, Mon, 10/17/2011

Negligence and a lack of supervision has led Sengguruh dam in the East Java town of Malang to be used as a waste disposal site for household garbage and industrial waste, state water firm Perum Jasa Tirta says.

“Besides the industrial waste from the hundreds of companies, there has been a huge volume of household waste — about 20 to 30 cubic meters a day during the dry season, and up to 80 cubic meters a day during the rainy season,” Jasa Tirta spokesman Tri Hardjono said in Malang on Monday as quoted by Antara.

Tri added that the waste not only contaminated the water in the dam, but also made it shallower, obliging local authorities to dredge the dam every year as the local power plant relies on it for water.

PLN to pay more to renewable energy producers

Rangga D. Fadillah, The Jakarta Post, Jakarta, Thu, 10/13/2011

The government, state electricity firm PT PLN and businesspeople have agreed to increase fees paid for power produced from biomass, biogas and city waste.

The government hopes this breakthrough can make investment in the sector more appealing, the new, renewable energy and energy conservation director general at the Energy and Mineral Resources Ministry, Kardaya Warnika, said Thursday.

According to a 2009 ministerial decree on electricity rates, PLN is obliged to buy power produced from biomass, biogas and city waste (connected to the medium voltage) at Rp 656 per kilowatt hour (kWh) in Java and Bali, Rp 787 per kWh in Sumatra and Sulawesi, Rp 853 per kWh in Kalimantan, West Nusa Tenggara and East Nusa Tenggara and Rp 984 kWh in Maluku and Papua.

For electricity connected to the low-voltage grid, the prices are Rp 1,004 per kWh in Java and Bali, Rp 1,205 per kWh in Sumatra and Sulawesi, Rp 1,305 per kWh in Kalimantan, West Nusa Tenggara and East Nusa Tenggara and Rp 1,506 in Maluku and Papua.

Under the new agreement, in Java and Bali, PLN will pay Rp 945 per kWh for power produced from biomass and biogas, Rp 1,050 per kWh for power produced from city waste using zero-waste technology and Rp 850 per kWh for power generated using landfill.

In Kalimantan, Sulawesi, West Nusa Tenggara and East Nusa Tenggara PLN will now pay  Rp 1,170, Rp 1,260 and Rp 1,020 per kWh. Meanwhile, in Maluku and Papua, PLN has agreed to pay Rp 1,267.5, Rp 1,365 and Rp 1,105 per kWh.

“The price change will be included into the revision of the 2009 ministerial decree on electricity rates,” Kardaya said during a discussion at his office in Jakarta.