ESDM Revises Regulations on Geothermal Energy Utilization

The Ministry of Energy and Mineral Resources (“ESDM”) is currently drafting a revision to Regulation of the Government No. 7 of 2017 on Geothermal Energy for Indirect Utilization, as partially repealed by Regulation of the Government No. 25 of 2021 on the Organization of ESDM Sector (collectively referred to as “Regulation 7/2017”). Deputy Minister of ESDM Yuliot Tanjung said the regulatory adjustments were made in consideration of the latest developments in the geothermal industry, particularly regarding indirect utilization such as power generation.

“The revision of Geothermal Utilization is still in process, and we are revising the draft,” Yuliot told Hukumonline.

This aligns with the Indonesian government’s efforts to continue the second phase of development for the Muara Laboh Geothermal Power Plant (Pembangkit Listrik Tenaga Panas Bumi/PLTP) in Solok Selatan, West Sumatra. Through the Ministry of Coordinating Economic Affairs, the development of this environmentally friendly power plant is funded through the Asia Zero Emission Community (“AZEC”) initiative, with a project value nearing USD 500 million and targeted for completion by 2027.

“Hopefully it won't be too long,” he added briefly.