Yogyakarta
(ANTARA News) - British Petroleum has agreed to participate in the development
of geothermal energy in Indonesia, President Susilo Bambang Yudhoyono said here
on Friday.
"BP in
talks just now agreed to participate in the development of geothermal energy in
Indonesia thus to increase our power capacity," he said at a press
conference.
President
Yudhoyono said the agreement was the result of his talks with BP CEO Bob Dudley
at Gedung Agung.
He said so
far geothermal energy in the country has not yet been exploited well despite
the fact that the country has the world`s biggest reserves.
He said the
energy source has not yet been developed well due to investment challenges.
He said
although incentives had been given the sector has not developed well. He said
the oil subsidy had also made the price of geothermal energy not competitive
yet.
The
President reiterated that geothermal energy is one of the future environmental
friendly renewable energy sources.
President
Yudhoyono on the occasion also expressed appreciation to BP that has agreed to
transfer 230 cubic feet of gas per day from its Tangguh field in Papua to
domestic industries. The gas from the field had so far been exported.
President
Yudhoyono said the agreement would support the economic development especially
domestic industrial development.
He said the
government in the future must make efforts to re-negotiate its working
contracts so that the gas produced by fields in the country could be sold to
the domestic market.
"In
view of our economic challenges the government had actually conducted
re-negotiations to make the gas produced in Indonesia not to be totally sold
abroad which is certainly not fair and correct," he said.
He said
however the government would always respect the contracts that have been
signed. "I honor the contracts but I also appeal to investors, business leaders
in Indonesia to understand the situation in Indonesia. If the contracts are
considered not right and not quite fair we, with a good will, wish to improve
them and renew them," he said.
Editor: Aditia Maruli
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