Geothermal Energy Development in Indonesia: Progress, Challenges and Prospect

Setiawan, Hadi

doi:10.18517/ijaseit.4.4.405

Cited by 10 publications

(9 citation statements)

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“…Geothermal power plants produce electricity by extracting the heat generated and stored within the Earth at depths of around 1 km and below. According to current estimates, Indonesia hosts around 40% of global geothermal resources due to its location on the ring of fire, an area known for seismic and volcanic activity [22,23]. As of 2019, Indonesia deployed 2.1 GW e or 9% of estimated geothermal resources which produced 14 TWh e .…”

Section: Geothermalmentioning

confidence: 99%

“…However, that study did not calculate potentials but proposed a new accounting methodology based on ESDM's values [25]. Additionally, recent literature comprises literature reviews of the geothermal industry in Indonesia [22,23,26,27]. From the industrial side, Royal Dutch Shell [28] indicates practical resources of 1009 PJ e per year or 42 GW e if a capacity factor of 76% is assumed [2].…”

Section: Geothermalmentioning

confidence: 99%

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Review of Renewable Energy Potentials in Indonesia and Their Contribution to a 100% Renewable Electricity System

2021

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Indonesia has an increasing electricity demand that is mostly met with fossil fuels. Although Indonesia plans to ramp up Renewable Energy Technologies (RET), implementation has been slow. This is unfortunate, as the RET potential in Indonesia might be higher than currently assumed given the archipelago’s size. However, there is no literature overview of RET potentials in Indonesia and to what extent they can meet current and future electricity demand coverage. This paper reviews contemporary literature on the potential of nine RET in Indonesia and analyses their impact in terms of area and demand coverage. The study concludes that Indonesia hosts massive amounts of renewable energy resources on both land and sea. The potentials in the academic and industrial literature tend to be considerably larger than the ones from the Indonesian Energy Ministry on which current energy policies are based. Moreover, these potentials could enable a 100% renewables electricity system and meet future demand with limited impact on land availability. Nonetheless, the review showed that the research topic is still under-researched with three detected knowledge gaps, namely the lack of (i) economic RET potentials, (ii) research on the integrated spatial potential mapping of several RET and (iii) empirical data on natural resources. Lastly, this study provides research and policy recommendations to promote RET in Indonesia.

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Section: Geothermalmentioning

confidence: 99%

Section: Geothermalmentioning

confidence: 99%

Review of Renewable Energy Potentials in Indonesia and Their Contribution to a 100% Renewable Electricity System

2021

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“…Indonesia has tried to attract investment in the geothermal sector by issuing tax incentive policies (Setiawan, 2014). The tax incentives include tax holidays (corporate income tax exemption for 5 to 15 years), investment allowances and tax credits (import duty facility, a reduction in net income by a percentage of the amount invested and extension of tax loss carried forward) and accelerated depreciation.…”

Section: Geothermal Development Of Asean Member Statesmentioning

confidence: 99%

Tax Incentive Policy for Geothermal Development: A Comparative Analysis in ASEAN

Abidin¹,

Rosdiana

Salomo

2020

Int. J. Renew. Energy Dev.

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This paper examines tax incentive policies in geothermal industries in ASEAN to better understand the development of geothermal industry investment in the ASEAN Member States (AMS) using a qualitative method. The results indicate that tax incentive policies have supported the investment climate and the development of geothermal industries in the AMS. Geothermal investments and production capacities in AMS have increased significantly. AMS that provide geothermal tax incentives include Indonesia, Lao PDR, the Philippines, Thailand and Vietnam. The performance of geothermal tax incentive policies is reflected in the level of utilization of geothermal potential, which is higher in states that provide greater tax incentives. The results also indicate that geothermal power plants in AMS use dry steam, flash and binary cycle technologies with flash plants being the most common. Results suggest that the future development of geothermal energy in AMS will be related to the tax incentive policy and investment climate in those states. Furthermore, the granting of various types of tax incentives should be focused on the initial investment in geothermal development. ©2020. CBIORE-IJRED. All rights reserved

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“…Indonesia memiliki 40% total potensi energi panas bumi di dunia (Setiawan, 2014 1 the world emits approximately 27 gigatonnes of CO 2 e from multiple sources, with electrical production emitting 10 gigatonnes, or approximately 37% of global emissions. In addition, electricity demand is expected to increase by 43% over the next 20 years.…”

Section: Pendahuluanmentioning

confidence: 99%

Keunggulan, Tantangan, dan Rekomendasi Kebijakan akan Pengembangan Energi Panas Bumi di Indonesia

Wisriansyah¹,

Pratama²,

Purba³

et al. 2020

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As a country that sits on the Pacific Ring of Fire, Indonesia has become the second largest geothermal power producer in the world. Geothermal energy is a clean-renewable energy that can help the country in reducing greenhouse gas emissions and secure its electricity supply in the future. Through Rencana Umum Energi Nasional (RUEN), government of Indonesia has set the target of building 7200 geothermal power plant capacity by 2025. However, per 2020, Indonesia has only built roughly about 2100 MW geothermal power plant capacity. This study aims to highlight geothermal’s advantages compared to other renewable energies and to discuss the biggest obstacle that had caused the sluggish development of geothermal power plant. This study is also expected to give strategic recommendations to the government to solve the biggest obstacle in developing geothermal power plant. The advantages of geothermal energy are environtmentally friendly, not intermittent, capable to be the base load, and doesn’t need a large area. This study argues that the biggest obstacle in developing geothermal power plant lies the exploration phase. Some actions had been taken by the government of Indonesia to support the exploration phase but this study believes that there are still some solutions that the government can take in order to be more supportive of geothermal exploration phase in Indonesia such as establishing geothermal-exploration entity, implementing depletion premium, and removing fossil fuel subsidy. These recommendations are expected to be capable in helping the government to achieve 7200 MW by 2025.

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Geothermal Energy Development in Indonesia: Progress, Challenges and Prospect

Cited by 10 publications

References 0 publications

Review of Renewable Energy Potentials in Indonesia and Their Contribution to a 100% Renewable Electricity System

Review of Renewable Energy Potentials in Indonesia and Their Contribution to a 100% Renewable Electricity System

Tax Incentive Policy for Geothermal Development: A Comparative Analysis in ASEAN

Keunggulan, Tantangan, dan Rekomendasi Kebijakan akan Pengembangan Energi Panas Bumi di Indonesia

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