Our in-depth regulatory report on Indonesia’s geothermal sector

Despite huge geothermal resources and a raft of regulatory incentives, Indonesia has been slow to harness the potential. In this in-depth regulatory report on Indonesian’s geothermal sector, we take a deep dive into the following topics:

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  • Plug the gap. Ambitiously, the Indonesian government has targeted 35 gigawatts of additional generation capacity in the next four years. This expanded capacity is intended to help to resolve electricity shortages and meet future demand. Will the bulk of future demand be met by conventional power sources, or does geothermal have a part to play?
  • Investment incentives. Are the financial incentives available for Indonesian geothermal development adequate to cover exploration and other risks? What part does technology have to play?
  • Financing options. Often “front loaded” in terms of capital investment, geothermal development demand innovative and flexible financing solutions. What options are available, and what has been the challenges for successful deployment in the past?
  • International support. What more can be done to capitalise on technical assistance and support, in view of Indonesia’s INDC commitments to the UN?
  • New projects. List of current and prospective geothermal projects.

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