Indonesia aims to tap into its massive reserves of geothermal energy.
While Indonesia boasts some 40 percent of the world's geothermal reserves, less than 1,200 megawatts of the energy source have been explored. It still has a long way to go to reach its national energy policy stipulation that geothermal energy account for 9,500 megawatts by 2025.
Indonesia lags behind the United States and the Philippines in geothermal power. To achieve President Susilo Bambang Yudhoyono's goal for the archipelago nation to become the world's largest user, Indonesia is counting on at least $12 billion in foreign investment.
To attract investors, the Finance Ministry has introduced incentives for investment in renewable energy such as exemptions in value-added tax, income tax and import duties as well as guarantees that state utility firms would buy electricity produced from geothermal and other alternative energy sources.
(EnergyDaily)
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