Government Regulations on Geothermal Development and Environmental Protection in Indonesia

Abstract

Since the world energy crisis in 1973, the Government ofIndonesia is still trying to decrease dependency of oil for domestic energy use. In line with this effort, program activity to explore and to exploit new andrenewable energy resources were increased as an alternative energy. To achieve the goal and to manage of this program, the government ofIndonesia in 1978, formulated National Energy Policy which consist of three main principle guide-lines, such as intensification, conservation and diversification energy, and established a National Energy Coordinator Body (BAKOREN) which consist of several ministers who have work related to energy. This National Energy Policy stated that utilization ofgeothermal energy is one of alternative energy that has a priority to be developed. According to regulate of geothermal development, several laws and regulations were issued by the Government of Indonesia since 1981. The earliest geothermal power generating projects in Indonesia were built at Kamojang Geothermal Fields, West Java in 1983. Now, 309,5 Mwe ofpower plant capacity has been installed. Currently 21 (twenty one) ofthe geothermal contracts have been signed In order to accelerate of geothermal resource development to generate of electric power, some deregulation has been issued, such as PERTAMINA is the state owned oil and natural gas enterprise may sell electricity and tax reduction. In the future, the Government of the Republic ofIndonesia is committed to utilize ofgeothermal energy for electric power by the end afthe Sixth Years National Development Plan (in the year of 1999) will be achieved ofapproximately 1,000 Mwe and at the end of the Second Long-Term Development Plan (in the year of2019) will be utilized ofaround 4,000 Mwe.