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Geothermal as Pertamina's future growth business

Proceedings Title : Proc. Indon. Petrol. Assoc., 30th Ann. Conv., 2005

Recently, oil prices have been increasing rapidly in the global market. This situation causes Pertamina to expend funds in importing oils in addition to the national production. To overcome the problem, The Government of Indonesia is gradually withdrawing its fuel price subsidy and is adjusting to following worldwide market prices. However to a certain extent, this policy will unfavourably impact the industries powered by such energy. The majority of electric generation in Indonesia is from fossil fuel. The figure is more than 10.5 GW requiring about 124 million barrels of oil per year, from the country's installed capacity of 53 GW. This contrasts with renewable geothermal energy, which is able to yield economic value from very efficient operations. The geothermal resource in Indonesia exceeds 20 GW, equivalent to eight billion barrels of oil. However the size of the installed geothermal power plants in the country is only 852 MW, or only four percent of the total. This figure is from Pertamina's own operation and its JOCs.Pertamina itself now still holds 15 geothermal working areas, distributed in Sumatra, Java, and Sulawesi. To keep pace with the Government geothermal road map, Pertamina has planned to boost the contribution of geothermal powers to the country, based on development in stages. The first stage implies committed geothermal development up to 1925 MW in 2008/2009, equivalent to about nine percent of the geothermal resources. In North Sulawesi, for example, where no-other resource is available, geothermal energy will be important. Besides its use as a power source, geothermal energy can also be used directly, providing additional value for a society comprised mainly of farmers and small entrepreneurs.

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