Development Impact Analysis of Jailolo Geothermal Field, Halmahera Barat, Indonesia.

Abstract

Star Energy was granted a license to develop Jailolo geothermal field in 2009. The Jailolo concession area is located in West Halmahera, in the North Maluku province of Indonesia. Based on the interpretation of a preliminary survey conducted in the Jailolo geothermal field it is estimated that it could have a power potential of up to 50 MW. A development impact analysis has been prepared as part of a Jailolo feasibility study, aimed at forecasting the impacts and benefits that would result if the project is implemented. In order to supply electric power to a local area, the Jailolo geothermal field requires new infrastructure which would inevitably change the existing environment as well as affecting social and economic aspects of the local community. As a consequence of any geothermal project Star Energy will bring geothermal technology to Halmahera which has yet experience the use of this technology, for example to explore existing local resources available in the Project area. Thus, the Jailolo geothermal field development will also provide human capacity building in the use of these technologies. Because of the energy efficiency gains and the competitive commercial price compared to other energy resources, the Jailolo geothermal development will potentially raise public awareness of the benefits of the geothermal industry and assist with the reform of the utilization of energy resources. Furthermore, the Jailolo project will obviously generate revenue that will be subject to company income tax in addition to royalties to the government and thus will provide benefits to the general community. The development impact analysis concludes that the project generally will bring social and economic benefits to the local community. However, potentially negative impacts, which could lead to dissatisfaction in the local community, could come from the land acquisition, waste treatment and local labor recruitment activities.