Government Revises Geothermal Tariff Scheme

The Ministry of Energy and Mineral Resources (Kementerian Energi dan Sumber Daya Mineral– “ ESDM ”) has emphasized the government’s commitment in restructuring tariff and incentive policies to support geothermal energy investment.

Special Staff to the Minister of ESDM, Pradana Indraputra, stated that the government is open to reviewing better incentives and tariff schemes for geothermal projects. He confirmed that the discussions and drafting process related to both matters are currently underway.

"If the ecosystem or industry requires incentives or regulations related to tariffs, then we will implement them. I think this is also good news for the industry," he said.

Pradana stated that the government, along with associations and stakeholders, has also begun discussing tariff regulations, incentives optimization, as well as social issues that often arise in the development of geothermal projects. According to him, attention to social aspects is equally important to ensure that investments are not only financially feasible but also accepted by local communities.

Chairman of the Indonesian Geothermal Association (API), Jufli Hadi, emphasized that the tariff scheme needs to be revised in order to improve the economic level of projects as a source of electric power plant, as well as to develop other business models.

"The revision of the geothermal tariff scheme is necessary to improve the economics of project and accelerate beyond electricity business models," he asserted.