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Geothermal Process

The governance of geothermal energy in Indonesia has undergone a series of substantial changes since the 1970s when, as a monopoly, Pertamina first began to explore and develop geothermal energy.

In the 1980s Pertamina began to partner with the private sector, engaging private sector technological know-how to develop and explore geothermal energy. Following the period of inactive development that resulted from the Asian Financial Crisis of 1997-1998, the Government began to initiate a series of reforms to reinvigorate development in the geothermal sector. In the 2000s, Pertamina began to function as a business entity and its monopoly over geothermal resources was ended. Simultaneously, decentralization, transferred the control of geothermal resources to local governments.

The Geothermal Law no 27/2003 outlined the process for harvesting geothermal energy, as well the basic factors and considerations of the process. The Geothermal Law also provided a framework for competition in the development of this energy source from both foreign and domestic investors. The Law outlined important components of geothermal development including: issuing of licensing, governmental roles, and the tendering authority. It also detailed the six stages in the geothermal utilization process: preliminary survey, tendering process, exploration phase, feasibility study, exploration stage, and finally utilization. The Government of Indonesia continues to fine tune the geothermal legal regime.

The new geothermal law, Law no 17/2014 eliminate of the terms of “mine” and “mining” for geothermal business activities and allow geothermal activities on forestry area.

The main stages of the geothermal business are obtaining a geothermal working area (GWA) and having a geothermal permit ( IPB ) . Currently there are 70 GWA and dozens of geothermal companies in Indonesia, 19 of which already have geothermal working area. GWA can be obtained through tenders, assignment of preliminary surveys and exploration and assignments to SOEs
Kamojang Unit I, 30 MW is Indonesia’s first commercial power plant (30 MW) went on-line at early in 1983 and at present Indonesia operate almost 2 GW geothermal power plant.

OPEN TENDER MECHANISM

Undang-Undang No. 21/2014 tentang Panas Bumi
Law No 21/2014 regarding Geothermal                                                                                                                                   INA                    EN

PRE SURVEY & ASSIGNMENT MECHANISM

Peraturan Pemerintah No 28/2016 tentang Bonus Produksi
Government Regulation No 28/2016 on Geothermal Production Bonuses and Its Procedures                                   INA                    EN

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Peraturan Pemerintah No 7/2017 tentang Panasbumi Untuk Pemanfaatan Tidak Langsung
Government Regulation No 7/2017 on Geothermal for Indirect Use

                                                                                                                                                                                                           INA                    EN

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Peraturan Pemerintah No 9/2012 tentang Jenis dan Tarif Atas Jenis Penerimaan Negara Bukan Pajak Yang Berlaku Pada Kementerian ESDM
Government Regulation No 9/2012 on Types and Tariffs of Non-Tax State Revenue Applicable to the MEMR

                                                                                                                                                                                                           INA                    EN

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Peraturan Pemerintah No 79/2014 tentang Kebijakan Energi Nasional
Government Regulation No 79/2014 on National Energy Policy

                                                                                                                                                                                                            INA                    EN

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Peraturan Presiden No 22/2017 tentang Rencana Umum Energi Nasional (RUEN)
Presidential Regulation No 22/2017 on General Plan of National Energy (RUEN)

                                                                                                                                                                                                            INA                    EN
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Peraturan Presiden No 4/2010 tentang Penugasan kepada PT. PLN untuk Percepatan Pembangunan Pembangkit Listrik Menggunakan Energi Terbarukan, Batubara, dan Gas

                                                                                                                                                                                                            INA                    EN
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Presidential Regulation No 4/2010 on Assignment to PT. PLN to Accelerate Development of Power Plant Using Renewable Energy, Coal and Gas

                                                                                                                                                                                                            INA                    EN

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Peraturan Presiden No 22/2017 tentang Rencana Umum Energi Nasional (RUEN)
Presidential Regulation No 22/2017 on General Plan of National Energy (RUEN)

                                                                                                                                                                                                            INA                    EN
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Peraturan Presiden No 4/2010 tentang Penugasan kepada PT. PLN untuk Percepatan Pembangunan Pembangkit Listrik Menggunakan Energi Terbarukan, Batubara, dan Gas

                                                                                                                                                                                                            INA                    EN
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Presidential Regulation No 4/2010 on Assignment to PT. PLN to Accelerate Development of Power Plant Using Renewable Energy, Coal and Gas

                                                                                                                                                                                                            INA                    EN