Geothermal Energy Indonesia – 1926, a group of people stood in the site named Kawah Kamojang. They have failed twice to yearn significant results. This third time will prove whether or not the Dutch Colonial could harness the power of volcanoes to create an energy source. They were successful in third.
That told the first ever successful boring test – the test to determine whether or not the geothermal energy is significant and sufficient, whether it is possible to be used as a source of energy in Indonesia. That discovery makes a milestone in the development of geothermal energy.
The Geothermal Energy Indonesia is increasingly being used both as an export commodity and as the primary contender for the main domestic source of energy. This is in-line with the Indonesian government’s direction to steer the country towards a more renewable energy sources.
Currently, Indonesia has been estimated to own about 38% to 40% of the world’s potential geothermal sources. To convert it in electricity, it would be estimated that the geothermal power in Indonesia could produce 28.000 megawatts of electricity.
The current development of Geothermal Energy Indonesia is skyrocketing due to several causes: investment, depleted oil reserve, and the consistently high electricity usage. The increasingly high construction of infrastructures helped Indonesia to be the 2nd highest producer of geothermal energy.
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Challenges from Within
There are several challenges that often makes the development succumbs into halt or even delays. The main thing to be seen here is that Indonesia hasn’t develop all of its territory in equal. The construction of basic infrastructures like plumbing or even roads and electricity is more focused on Java.
1. Lack of Accesibility
The main thing that barred the development to advance is the lack of accessibility. As a country in the form of archipelago, many of its territories were still covered in wilderness or other natural barriers. Geothermal Energy Indonesia often being held by such thing.
2. Legal Entanglements
You might think that, the accessibility could be easily done – no roads? Built one! No electricity? Let’s develop the grid! But the main problem is that the legal wrangles about the land rights and the financial reimbursement that came with that.
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The Need for Local Partner
There are problems that came when we want to build things on some land: often times there are a certain corporations or a group of people that did a maneuver to acquire those and tried to jack up the prices so that they could profit from the government Geothermal Energy Indonesia project.
This highlights the importance of local partners that understand the culture, local politics and have the insight towards regional economic players. So, either landlords and businessman playing the game or indigenous people wanted to be respected – you need to have a trusted local partner to navigate.
Since 2012, there has been Geothermal Energy Indonesia power plants projects that were not working. This is mostly because they were stuck in the exploration or discovery stages and have continuously missed development deadlines both due to the lack of supporting access, and the political process.
These issues were mostly due to having less-trusted local partner. The lack of information and right communications makes troubles compound. Either because of lack of connection or the less-updated knowledge of local and regional political economy.
So Why Should You Invest in Here?
So that’s the problem, but is that all? As the Geothermal Energy Indonesia is found beneath the land, the potential beneath the surface is bigger and increasing every time. The increasingly valuable geothermal energy wasn’t subsidized but as coal, but the shift in administration changes that.
The current administration has opened more and more business friendly policies so that the private investors could built better in order to smooth things up legally and prevent illegal activities because of uncertain land, investment and financial laws.
The Geothermal Energy Indonesia is currently being opened more to the private investors as the ministry of forestry and the ministry of energy has allowed some exploration for energy purposes within the designated conserved forest areas, for energy purposes only.
The pricing policy that often established a feed-in tariff scheme is still existed. The policy states that the country’s electrical corporation (PLN) is required to purchase power from geothermal based plants according to certain percentage of capacity.
The Ministry of forestry also granted the status of ‘not-mining’ activity for the Geothermal Energy Indonesia exploration and distribution – this grants private investors permission to act in several forests or jungles that were until now were prohibited from mining and energy discovery.
The importance of the ‘non-mining’ status is that it allows our investment and companies to explore more territories and unlock more potential within the archipelago. Thus making our potential investment return relatively bigger than the already saturated coal mining market.
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Why Should You Invest in Our Market?
Geothermal Energy Indonesia is one of the top 2 (behind the U.S) in the development of infrastructure and usage of geothermal energy within the industry. Even the usual ‘state-corporation’ which often succumbed to corruption in other countries has become a partner and leverage in the industry.
Although leading, the dynamics in the geothermal energy in Indonesia isn’t being saturated yet. What we meant by that is there has yet one company or faction that became very dominant and could dictate the market with their own share of the industry. There are so many niches and potentials to be developed.
Geographically, Indonesia might not be seen as that ‘big’ country like the wide land mass of China and the United States. But that is what makes them rich and has big potentials in Geothermal Energy Indonesia. So the potentials for discoveries and other developments are beyond what we could estimate.
Again, one of the more important steps you have to take in order to gain the best result is to pick the best local partner you have – the partner that understands the local dynamics, and potentials – the people that would guide you to achieve your vision.
You can find such people in the Proconsultofficial.com, where you could consult, ask questions and more importantly got the strategic answers and knowledge that you don’t know about Geothermal Energy Indonesia. Check on the site for more information!