Geothermal Takes a Step Forward in Indonesia With Sumatra Drill

Jakarta Globe, Tito Summa Siahaan, September 24, 2012

This 2010 file photo shows an Indonesian worker of PT Pertamina Geothermal
 Energy checking a production well in Kamojang. The government has announced
 it will raise the price of three types of renewable energies for electricity needs,
saying the move is necessary to encourage Indonesia's overall renewable
energy production. (AFP Photo/FILES/ ADEK BERRY)

               

Related articles

• Geothermals Boosted by New Price Floor
• Geothermal Energy Plan Raises Hackles
• Geothermal Power Could Help Bridge Indonesia's Energy Gap: WWF
• Indonesia to Expand Direct Appointment for Geothermal Concessions
• Indonesia Announces Huge Geothermal Energy Investment

Nearly a decade after government set the rules for geothermal energy, a developer on Friday undertook the first exploration drilling for the much-vaunted resource that could help power the nation.

Supreme Energy Muara Laboh has started drilling at its working area in South Solok, West Sumatra. The activity is expected to take up to nine months to complete, and will be followed by the construction of a 220 megawatt geothermal power plant should the exploration be successful.

The geothermal energy director at the Energy and Mineral Resources Ministry, Tisnaldi, hailed the project as an historical landmark because it was the first such activity conducted since the government issued the Law on Geothermal Energy in 2003. He added that it was one of the largest energy projects in Sumatra.

“Geothermal projects are crucial in order to make our energy more environmentally friendly in the future, especially considering that our oil, gas and coal resources are in decline,” Tisnaldi said.

If the power plant goes ahead, the project is estimated to cost Rp 7 trillion ($722 million), according to a company statement received on Sunday. “The power plant construction will start in 2014 and is expected to begin commercial operation in 2016,” the statement said.

The electricity generated from the power plant will be dispatched to state utility Perusahaan Listrik Negara’s power grid based on a 30-year power purchase agreement, it said.

Surpeme Energy Muara Laboh is jointly controlled by local company Supreme Energy, France-based International Power-GDF Suez and Japanese firm Sumitomo Corporation.

This project is a part of phase II of a government program to add 10,000 megawatts in generating capacity across the country. While phase I consisted largely of new coal-fired power plants, phase II concentrates on renewable energy.

By 2025, the government expects the portion of electricity generated from renewable energies to reach 17 percent, while diesel fuel will stand at 20 percent, gas at 30 percent and coal at 33 percent.

At present, 5.7 percent of electricity is from renewable sources, 24.5 percent is from coal and 20.1 percent from gas.

To encourage investment, the government this month raised the price floor for renewable energy.

Astra Introduces New Low-Cost Green Car

Jakarta Globe, Faisal Maliki Baskoro, September 19, 2012

Related articles

• Astra Otoparts Creates Two Units for Expansion
• What Down Payment Restriction? Sales Up 31% at Toyota Astra
• Serasi Autoraya Looking at Expansion
• Astra Unit Delays $318m Bond Sale Plan
• OverallProfits Healthy For Astra Group in H1

Astra International on Wednesday introduced its new low-cost green car, with the price tag expected at less than $10,000.

To be sold as both the Toyota Agya and Daihatsu Ayla, the car is being produced cooperatively by Toyota Motor Corporation and Daihatsu Motor Company. It is the third car collaboration between Toyota and Daihatsu, after their Avanza-Xenia and Rush-Terios models.

“We believe with the fuel subsidy difficulties, low fuel consumption cars will get a positive response,” said Prijono Sugiarto, the president director of Astra International. “The demand for environmentally [friendly] cars is increasing along with global warming. This car answers both problems.”

“The designer of the car is an Indonesian named Mark Wijaya,” Prijono added.

The car reportedly consumes just one liter for every 30 kilometers driven. The aluminum-bodied “city car” carries up to five passengers.

The car will be produced in the new factory of Astra Daihatsu Motor in East Karawang, West Java.

Amelia Tjandra, marketing director for Astra Daihatsu Motor, said the price of the car, with four variants, will range from Rp 75 million ($7,900) for the most basic option (without AC, power steering, radio) to Rp 105 million.

“The price is subject to change depending on the government’s policy [on low-cost green cars, or LCGC], but people can start booking,” Amelia said.

Sudirman MR, president director of Astra Daihatsu Motor, said the price could be below Rp 100 million if the government freed up LCGCs from additional luxury goods taxes.