Geothermal Energy — Challenges

The driving force behind geothermal development is Article 33 of the Constitution on development of the energy sector. From independence up to the decentralization in 1998/1999, this was done through state-owned enterprise Pertamina.

All geothermal development in that period was through joint venture agreements with Pertamina who managed geothermal resources on behalf of government. The current geothermal capacity is 1.2 gigawatts with the majority of the plant using steam supplied by Pertamina.

After deregulation, geothermal resources were carved up between the national and local governments. Which local government entity would have control was defined by the location of the resources. These could be one or two districts or the provincial government.