RI's volcano power could light up the archipelago<\/p>\n
Eric Unmacht, Deutsche Presse-Agentur, Jakarta<\/p>\n
Geothermal energy enthusiasts talk about the golden days of
\npromise for the industry almost like techies in Silicon Valley
\nabout the boom days before the Internet bubble gave way.<\/p>\n
"Before, (geothermal) was very, very attractive," said Udibowo
\nCiptomulyono, senior officer for primary energy management at the
\nstate-owned PLN electric company, as he eagerly sorted through
\nstacks of books, maps and reports that give evidence to the
\ncountry's vast potential in the field.<\/p>\n
"Ten years ago I was the head of a division," Ciptomulyono
\nsaid. "Every month we had gatherings and many people would come.
\nThere was so much excitement among investors. Now there's no
\ndepartment. It's only me."<\/p>\n
Indonesia's recent ratification of the Kyoto Protocol in June
\ncould put alternative energies like geothermal back in investors'
\nscopes, but experts are pessimistic that the industry can realize
\nits true potential unless a new government emerges to play a more
\nactive role in promoting it.<\/p>\n
Home to some 500 volcanoes -- the world's highest
\nconcentration, known as the "ring of fire" -- Indonesia could, in
\ntheory, generate enough geothermal energy to electrify the entire
\ncountry.<\/p>\n
By using the steam generated by lava flows under inactive
\nvolcanoes, geothermal power in Indonesia could account for more
\nthan 27,000 megawatts of power -- an estimated 40 per cent of the
\nworld's total reserves.<\/p>\n
Nevertheless, Indonesia's current electricity generating
\ncapacity from geothermal power is just over 800 megawatts, or
\nabout 3 per cent of its total potential. Indonesia has instead
\nchosen to rely on fossil fuels to energize the country.<\/p>\n
But this wasn't always the case.<\/p>\n
In the late-1980s the Indonesian government began to seriously
\npromote exploration in geothermal energy. At least 11 geothermal
\ncontracts were awarded and some 30 sites were approved for
\ndevelopment in the early 1990s.<\/p>\n
The promise of geothermal as an energy source, however, left
\nlargely with the investors who fled after the 1997 financial
\ncrisis, and further diminished with the ouster of former
\npresident Soeharto a year later.<\/p>\n
"There was more promise (for geothermal) under Soeharto," said
\nRiki Ibrahim, Indonesia's representative for the International
\nGeothermal Association.<\/p>\n
"There was good coordination of ministers and they would
\nimplement things," Ibrahim said. "They would think long-term."<\/p>\n
The economic and political uncertainty that followed
\nSoeharto's fall made geothermal energy, which typically involves
\nlong-payback periods, lose a lot of its luster for investors and
\nofficials in the successive chain of governments.<\/p>\n
However, with the signing of the Kyoto Protocol, investors are
\neligible for millions of dollars in grants under the emissions
\ncredits trading system.<\/p>\n
Nonprofit organizations, government officials and members of
\nthe private sector were trying to ensure this incentive is not
\nlost by planning to launch a Designated National Authority last
\nweek to help companies navigate the cumbersome and expensive
\nprocess of applying for the grants.<\/p>\n
Nevertheless, experts still remain skeptical about hopes for
\ngeothermal's immediate development as a major energy source for
\nIndonesia due to what they see as a lack of incentives for the
\ngovernment.<\/p>\n
"What happens depends on the political will," said PLN's
\nCiptomulyono.<\/p>\n
The incentive to turn to alternatives has historically been
\nlacking in Indonesia, due to the enormous revenues drawn by the
\ncountry's hefty reserves of oil, coal, gas and other highly-
\nprofitable natural resources.<\/p>\n
"The companies will enjoy money from the emissions credit and
\nalso the reputation of being a clean company," Ibrahim said.
\n"Their stock will go very high because people will see them as
\nsustainable, but what's the government going to get out of it?"<\/p>\n
Experts say the government's support of clean, alternative
\nenergy is crucial to lure investors, as electricity is a
\ndifficult commodity to trade and is not a highly-profitable one.<\/p>\n
Industry advocates say the government needs to provide
\ninvestors with incentives, either in the form of tax breaks or by
\ncovering the financial risk of exploration and data collection as
\nis often done with fossil fuels.<\/p>\n
But industry advocates also say this is unlikely in a
\ngovernment prone to corruption, due to the financial incentives
\nfor individual officials from existing energy sources.<\/p>\n
Given the fact that Indonesia, the only Asian member of the
\nOrganization of Petroleum Exporting Countries (OPEC), became a
\nnet importer of oil just this year, there may be more incentive
\nin the future for politicians to give geothermal another look.<\/p>\n
But for now, experts say it's going to take a peaceful
\ntransition to a new government with less corruption and more
\nforesight for the country before Indonesians see geothermal
\nenergy illuminating the archipelago.<\/p>\n
"I hope the new president will care," Ibrahim said. "We should
\nbe the number one (geothermal energy producer) in the world."<\/p>",
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