History of Joint Operation Contract in Indonesia

Abstract

The background of the Joint Operation Contract (JOC) in Indonesia is as part of the energy policy. On the last few decades the Indonesian government intends to implement energy diversification by intensifying the utilization of geothermal resources are located in Indonesia, especially for power generation. To accelerate the development of geothermal resources without annoying the applicable laws, and as well as fuel savings policy to support energy diversification, the Government invited private companies to cooperate with PERTAMINA to develop in the upstream side of the geothermal field to produce steam and in the downstream side to build Geothermal Power Plant (PLTP) to convert steam into electricity in the form of JOC. In relation to the JOC to ensure the purchase of production from the implementation of the JOC is made also Energy Sales Contract (ESC) between PERTAMINA and the Contractors with the buyer in this case is the State Electricity Company (PLN). In its development, there are two (2) kinds of JOC that has been produced by PERTAMINA since 1982. The first model is the JOC produced before 1993, the first model of this co-operation is only concerned with the development of the upstream side in the form of "Build Own and Operate" (BOO). The second model is the JOC produced after 1993, in the form of this cooperation PERTAMINA and contractors in addition to developing the upstream side also develop downstream side in the form of BOO or in the form of "Build Own and Transfer" (BOT). Through past cooperation model, the development geothermal resource utilization in Indonesia becomes faster.