The government will accelerate the development of geothermal energy.\nMinister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia said\nthis is being done as part of the strategy for national energy\nsovereignty and security.<\/p>\n
However, Bahlil admitted that licensing is one of the factors\nhampering the development of New and Renewable Energy (EBT), which has\nbeen widely complained about by business players.<\/p>\n
\u201cOne of the problems is the speed of regulation, permits and all\nsorts of things,\u201d said Bahlil after attending The 12th Indonesia\nInternational Geothermal Convention & Exhibition (IIGCE) at JCC\nSenayan, Wednesday (19\/8\/2026).<\/p>\n
According to him, Indonesia has considerable potential for geothermal\nenergy. However, only around 10-13% of these clean energy reserves have\nbeen utilised.<\/p>\n
Bahlil stressed that Indonesia is the country with the largest\ngeothermal resources in the world. However, in terms of implementation,\nIndonesia ranks below the United States (US).<\/p>\n
He revealed that the lack of energy implementation by business\nplayers is related to convoluted licensing.<\/p>\n
\u201cSince I was appointed as Minister of Energy and Mineral Resources, I\nchecked what makes it slow, because I used to be a business player too.\nBefore I entered government, I was a business player. And after I\nentered government, I became Minister of Investment. Business players\nwant things to be fast, but if the rules are convoluted and slow, what\ncan you do?\u201d he said.<\/p>\n
Therefore, Bahlil has cut regulatory stages that hinder business\nactors. Nevertheless, these efforts are considered insufficient.<\/p>\n
\u201cAnd now it turns out that after my evaluation, there are still many\nobstacles to these regulations,\u201d he added.<\/p>\n
Bahlil further explained that in addition to improving regulations,\nhe is also collaborating with other ministries regarding incentives,\nparticularly taxation. This is because business players and regulators\ncannot operate independently.<\/p>\n
\u201cI have also checked the economic value. Even though it has reached\n9.5 cents per kWh, the association says it is still insufficient. We\nwill provide a breakthrough with tax incentives. So later we will amend\nthe Government Regulation and Presidential Regulation for ease of doing\nbusiness and incentives for the geothermal sector,\u201d he explained.<\/p>\n
Bahlil stressed that business players working in the EBT sector must\nhave strong and serious commitment. The business must be developed\nquickly.<\/p>\n
\u201cFor business players who have obtained concessions, they must also\nmove quickly. Do not hold onto the concessions. If they are held, that\nalso slows things down. So let us not be slow and have it only be seen\nas something done by the government,\u201d he said.<\/p>\n
\u201cI always sign temporary suspensions. Temporary suspensions. This is\npart of the strategy of unscrupulous business players. Thank God if\nthere really is a problem. But I am a former business player, my\nintuition and sense of smell, I know. This temporary suspension is\nactually a way to extend your contract period because you have a problem\nthere. Thank God if the problem is with the people. But if the problem\nis technological or financial, that is a problem,\u201d he continued.<\/p>\n
He also asked the National Energy Council (DEN) to help oversee\nbusiness players working in EBT so that they run their businesses\nproperly and responsibly.<\/p>\n
\u201cPermits have been extended once. Some want to be extended twice, and\nsome even want three times. Once we issue a termination, they lobby\nagain. Using this, using this, using this. That is fine, as long as you\nhave commitment. For us in the government, whoever does the work is\nfine, as long as it is fast,\u201d he concluded.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/bahlil-cuts-permits-and-offers-incentives-to-accelerate-geothermal-development-1787133161", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }