Maximizing Community Benefits and Minimizing Environmental Impacts in the Gunung Salak Geothermal Project, Indonesia

Abstract

The 330 MW Salak geothermal field in West Java, Indonesia has been developed in a manner that has enabled Unocal Geothermal of Indonesia (UGI) and its partners to successfully mitigate impacts on the surrounding environment. The project has shown that commercial geothermal development in a protected forest area can preserve the environment and provide economic benefit to the surrounding community.

Salak field is situated in an area of dense primary rain forest, which is very sparsely populated. The surrounding population lives in small villages, some of which lie close to the forest boundary. Principal economic activity is wet rice cultivation and fish farming supplemented by collection of forest products. The construction of the first phase of the Salak project (110 MW) started in 1990 and began providing power in 1994. An expansion development program (220 MW) was initiated in 1994 and commercial operations started in late 1997. A 1989 environmental impact assessment (EIA) for the initial development was followed in early 1994 by a second EIA, which incorporated Unocalís Phase 1 experience and addressed stricter measures to protect the environment.

Community projects were developed using three criteria: to directly improve the public health, education and local environment; encourage self-help and community participation; and to create a positive awareness of UGIís role in the project area and its contribution to the local economy.

UGIís well-planned community development program and responsible environmental management has been very successful, and the project won a prestigious environmental award from the Indonesian government in 1997.