Jakarta Globe, Fitri
Wulandari, June 18, 2013.
Indonesia
started a fund to finance the exploration of geothermal energy resources as the
nation seeks to reduce its dependence on fossil fuels for electricity.
The finance
ministry’s investment agency will manage Rp 3 trillion ($302 million) this year
for geothermal exploration, Saritaon Siregar, the agency’s chairman, said in an
interview at a conference in Jakarta on Tuesday.
Local
governments that have geothermal areas can use the fund to determine their
potential, he said.
“If
exploration shows good results, the local government can put the area for
bidding and investors that win can repay the exploration funds to us,” Siregar
said.
The energy
source produces 1,341 megawatts, or less than 5 percent of Indonesia’s
potential geothermal generating capacity of 29,038 megawatts, according to data
from the energy and mineral resources ministry.
Private
investors can also apply for loans for geothermal exploration, Siregar said. The
agency hasn’t started distributing funds, he said.
Bloomberg