Indonesia tank deal raises moral questions

Deutsche Welle, 5 November 2012

With Indonesia set to invest in a major tank deal with German suppliers, concerns over human rights abuses refuse to go away. There are also questions as to whether the archipelago nation needs such equipment.

The Indonesian foreign ministry has announced that the country's armed forces will buy 103 Leopard and 50 smaller Marder tanks from Germany. The orders were placed with the company Rheinmetall in Dusseldorf, Germany.

"The tanks will be delivered in stages - at the end of 2012, in 2013 and in the first half of 2014," Deputy Defense Minister Sjafrie Syamsuddin told journalists in Jakarta.

The deal is thought to be worth some 210 million euros (270 US dollars). The Indonesian Defense Ministry has said it will buy 40 Leopard 2A4 vehicles and 63 Leopard Revolution tanks.

A contract was due to be signed between Jakarta and Rheinmetall on Wednesday. The deal coincides with Rheinmetall's participation in an Indonesian military trade fair, the Indo Defense Expo and Forum, from November 7 to 12.

Syamsuddin made the announcement,
 saying the tanks would come in stages

Previously, the defense ministry had named the armaments company Krauss Maffei Wegmann in Munich as its supplier - something the firm had denied.

Despite those denials, the news was enough to trigger a storm of protest. Human rights organizations have sharply criticized the fact that the tanks are being procured from Germany. Valeska Ebeling of the rights group Survival International explained that her organization had strong concerns about the human rights situation in Indonesia - particularly in the region of West Papua. Survival International claims the indigenous people of the resource rich area have been suppressed since 1963.

"The German tanks could be used against by the government against its own people," said Ebeling. "We want Germany to address the issue of responsibility and human rights with Indonesia."

The opposition in Jakarta is also unhappy. Indonesian parliament representative and member of the defense commission, Helmi Fauzi, explained to DW that the Leopard tanks were not appropriate for Indonesia, being too heavy for the country's road system. In addition, he claimed, the Indonesian navy did not have ships suitable for carrying the tanks.

"Indonesia needs many more light and small tanks," explained Fauzi, who is a member of the largest opposition party the PDI-P. But while the defense commission initially saw a heated debate about the tank deal, Fauzi said, the majority were eventually in favor.

Rheinmetall is due to exhibit its wares
at a military trade fair in Indonesia

He said they were persuaded by the obsolescence of the army's existing equipment.

'A matter of status'

According to security experts, the Indonesian army was keen to buy heavy battle tanks because neighboring countries such as Malaysia and Singapore already possessed such weapons. For the army, the possession of such weapons was important, even if only for prestige.

The Indonesian human rights organization Imparsial criticized the project. Poengky Indarti, the group's executive director, described it as a pure waste of money adding that any deal should be based on objective rather than political criteria. Transparency, said Indarti, remained paramount to prevent corruption.

Dutch rejection, change of plan

The deal is also for a number of
light German "Marder" tanks

Originally, Indonesia had planned to buy used Leopard tanks from the Dutch army. However, the Dutch parliament rejected the deal earlier this year over concerns about human rights abuses. An Indonesian army spokesperson said that there were other possibilities - namely Germany.

Opponents of the weapons deal are now relying on the German government.

"Even if the weapons deal is not negotiated directly with the German government, but with a company instead, the government still needs to give its permission," stressed Survival International's Ebeling, hoping the government would carefully consider the situation of human rights in Indonesia.

LEN, Pertamina to Develop Solar Panel Plant

Jakarta Globe, October 29, 2012

LEN Industri and Pertamina will join forces to build a solar cell production
plant. (AFP Photo)

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State-owned companies LEN Industri and Pertamina are collaborating together to build a solar cell production plant in Rancaekek, Bandung, according LEN Insdustri President Abraham Mose.

Abraham, speaking to Antara news agency on Monday, said that the groundbreaking for the plant's construction is expected to take place in December.

"This an asignment project and at the same time an investment, so that we do have a renewable energy inustry in Indonesia," Abraham said. He gave no further details on the plant, but that it could produce solar cells with a total capacity of 60 MWatts.

"This is a venture and an investment. [It will be done] so that we can have a renewable energy industry in Indonesia," Abraham said. He gave no further details about the plant, but mentioned that it could produce solar cells with a capacity of 60 megawatts.

A presidential regulation issued in 2006 states that solar energy should account for between 0.2 and 0.3 precent of national energy usage by 2025, or the equivalent of 1,000 megawatts per hour.

Abraham also noted that LEN was planning on investing in airport navigation equipment.

"We will make a proposal for the airport navigation project since it is in line with LEN's focus. We will do this in the next five years," he said.

Abraham mentioned that on Nov. 28 the company would introduce products made in conjunction with the Research and Technology Ministry.

 LEN Industri's expertise, according to to the company's president, lies in railway signage, marine navigation, renewable energy, military communication equipment and control systems.

Abraham noted that LEN has a strategic corporate division devoted to mapping industrial trends.

"Basically, we are always monitoring development and looking for opportunities for growth," he said.

Indonesia Geothermal Sector Attracts Panax, Mitsubishi, BP, Chevron

Renewable Energy World, Leslie Blodgett, GEA, October 18, 2012

WASHINGTON, D.C. -- Indonesia has had the lowest volatility in economic growth of any OECD or BRIC economy over the past decade, while its economy in the short term is conjectured at close to 7% growth per year, according to Proactiveinvestors.com.au.

Concurrently, recent efforts by the Indonesian government to attract geothermal companies seem to be having an effect. At a September meeting in Washington DC on Renewable Energy Opportunities in Indonesia, hosted by the US-ASEAN Business Council, speaker Joel Kopp (U.S. Embassy Jakarta) recounted the efforts of Indonesian leaders, who have set a separate feed-in tariff for geothermal at between 10 and 18.5 cents-per-kWh. Also, projects under 10 MW are required to be purchased by state-owned utility Perusahaan Listrik Negara (PLN). Kopp added that PLN has made improvements to their reliability, as well.

Australian Panax Geothermal is making strides in Indonesia. With three key geothermal projects scheduled to begin production in Indonesia over the next three to four years, Kerry Parker, managing director, commented to press on the company’s growth in Indonesia: “Panax has long recognized the investment potential in Indonesia, having launched several projects within the region and with plans to expand on our current interests,” Parker said. Projects for Panax include the recently negotiated power purchase agreements for its Sokoria and Dairi Prime geothermal projects, each with a planned initial capacity to generate 30 MW. Agreements are with Indonesian electricity regulator PT PLN and the Indonesian Government.

One company with increasing interest is Mitsubishi Corporation, which has agreed to acquire 20% shares of Star Energy Geothermal Pte Ltd ("SEGPL"). SEGPL manages operation of the 420-MW Wayang Windu Geothermal Power Project Plant in Java Island, one of the world's largest geothermal resources. This acquisition is the country’s “first entry into the Indonesian power industry and its first operation of a geothermal power plant,” according to the release. Mitsubishi could develop and operate multiple geothermal power plants in Indonesia in the future, including an expansion of Wayang Windu.

Additionally, oil and gas giant BP (UK) could expand its business in Indonesia, it said recently. Energy and Mineral Resources Minister Jero Wacik told The Jakarta Post the government was curious as to whether BP would enter the geothermal energy sector after US-based Chevron “had successfully become the world’s largest geothermal power producer after years of operating in Indonesia.”

Chevron Geothermal’s policy, government and public affairs manager, Ida Bagus Wibatsya was quoted that the development could create healthy competition among geothermal energy developers: “It will be very positive for the development of the geothermal energy industry as well as supporting the government’s programs on renewable energy resources.”

This article was originally published in GEA's Geothermal Energy Weekly and was republished with permission.

A geothermal energy project in Tibet. (Photo/Xinhua)

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"Recalibration of Free Choice"–  Mar 3, 2012 (Kryon Channelling by Lee Caroll) - (Subjects: (Old) Souls, Midpoint on 21-12-2012, Shift of Human Consciousness, Black & White vs. Color, 1 - Spirituality (Religions) shifting, Loose a Pope “soon”, 2 - Humans will change react to drama, 3 - Civilizations/Population on Earth,  4 - Alternate energy sources (Geothermal, Tidal (Paddle wheels), Wind), 5 – Financials Institutes/concepts will change (Integrity – Ethical) , 6 - News/Media/TV to change, 7 – Big Pharmaceutical company will collapse “soon”, (Keep people sick), (Integrity – Ethical)  8 – Wars will be over on Earth, Global Unity, … etc.) - (Text version) 

“…  4 - Energy (again)

The natural resources of the planet are finite and will not support the continuation of what you've been doing. We've been saying this for a decade. Watch for increased science and increased funding for alternate ways of creating electricity (finally). Watch for the very companies who have the most to lose being the ones who fund it. It is the beginning of a full realization that a change of thinking is at hand. You can take things from Gaia that are energy, instead of physical resources. We speak yet again about geothermal, about tidal, about wind. Again, we plead with you not to over-engineer this. For one of the things that Human Beings do in a technological age is to over-engineer simple things. Look at nuclear - the most over-engineered and expensive steam engine in existence!

Your current ideas of capturing energy from tidal and wave motion don't have to be technical marvels. Think paddle wheel on a pier with waves, which will create energy in both directions [waves coming and going] tied to a generator that can power dozens of neighborhoods, not full cities. Think simple and decentralize the idea of utilities. The same goes for wind and geothermal. Think of utilities for groups of homes in a cluster. You won't have a grid failure if there is no grid. This is the way of the future, and you'll be more inclined to have it sooner than later if you do this, and it won't cost as much….”

General Electric, PLN to Build Renewable Energy Plant in Sumba

Jakarta Globe, October 15, 2012

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General Electric and state utility firm Perusahaan Listrik Negara on Monday signed a Letter of Intent to cooperate in the development of a model renewable energy power plant in Sumba, East Nusa Tenggara.

Under the agreement, GE will provide expertise in the construction of a power plant on Sumba that will use Integrated Biomass Gasification technology, according to a GE statement.

The plant, which is expected to produce 1 megawatt of electricity, will use wood chips as fuel.

“PLN is certain that the technology and the experts from GE can play an important role in the development of an electricity plant using biomass in Indonesia,” PLN president director Nur Pamudji said after the signing.

He said success in Sumba would demonstrate the technical and economic feasibility of expanding the nation's electricity grid to isolated regions using biomass fuels and could also become a model for similar power plants elsewhere.

“GE is committed in bringing the latest technology and solutions to help Indonesia overcome its challenges in developing the country,” GE Indonesian CEO Handry Satriago said.

Borobodur Temple to Get Solar-Powered Lighting

Jakarta Globe, October 15, 2012

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Greenpeace has started installing a solar-powered lighting system that will illuminate the ancient temple of Borobodur on the outskirts of Yogyakarta.

The lighting system is scheduled to start working on Oct. 28, the group said in a press release on Sunday.

The organization said that the project was part of a nationwide campaign, called the “Climate Rescue Station,” to promote awareness about renewable energy to people in Indonesia.

The project also aims to urge the government to implement a massive uptake of renewable energy sources and to decrease dependence on dirty fossil fuels like coal.

“Greenpeace intends to light up Borobodur to enlighten Indonesians about our vision of a clean and safer energy future. We want to remind Indonesians, particularly the government, that we can work together for a better future with renewable energy,” said Arif Fiyanto, climate and energy campaigner for Greenpeace Southeast Asia.

He said the government must make the switch to renewable energy to protect communities from the health and environmental hazards of coal pollution.

“We are calling on all Indonesians to be part of the solution and join the movement for renewable energy by visiting the Climate Rescue Station at Borobodur, or by signing up at our website,” Arif added.

Borobudur, the world’s biggest Buddhist monument, was built in the ninth century and has been Indonesia’s leading tourist attraction.

“Today, it is a symbol for enlightenment not only for Indonesians but for people around the world,” the group said. “Greenpeace is providing solar-powered lighting around the temple complex to show that renewable energy is not only possible but a viable alternative to meet Indonesia’s energy needs.”

Marsis Sutopo, head of Borobudur Heritage Conservation, voiced his appreciation to Greenpeace’s initiative.

“Our hope is that people grow increasingly aware that solar power is needed as an energy source, thus reducing our dependence on energy from fossil fuels,” he said.

Many experts have agreed that Indonesia’s position on the equator allows it to use the sun’s abundant supply of heat as an energy source throughout the year. But it’s something the country has not taken advantage of.

According to Greenpeace, the country’s abundant geothermal potential accounts for roughly 40 percent of the world’s total resource.

Latest government data shows that renewable energy contributes to less than 5 percent to the country’s power-generating capacity, according to the group.

Greenpeace said it is calling on the government of Indonesia to fast-track the development of renewable energy in the country by setting ambitious and binding targets for renewable energy, guaranteeing priority access to the grid for renewable power generators, providing defined and stable returns for renewable energy investors, and phasing out all subsidies for fossil fuels.

The group would also like fossil fuel companies to shoulder the social and environmental burden caused by their facilities.

“Renewable energy is a key building block for a fair and equitable green economy,” Arif said. “We call on Indonesians to sign up and join our renewable-energy campaign and be part of the movement that will steer our country to a better future.”

China's geothermal energy could run the country for 260,000 years

Want China Times, Staff Reporter 2012-10-07

A geothermal energy project in Tibet. (Photo/Xinhua)

China holds potential geothermal energy between 3,000 and 10,000 meters below the surface of the earth equal to 860 trillion tons of standard coal, a storage which is estimated to have a lifespan of 260,000 years using current figures for energy consumption.

The Ministry of Land and Resources underwent a national survey on the distribution of geothermal energy over the country between 2009 and 2011, re-evaluating the storage of shallow geothermal energy in 287 cities, geothermal energy in 12 sedimentary basins and 2562 hot springs regions, as well as the potential hot-dry-rock geothermal power at between 3,000 and 10,000 meters below the surface of the earth, reports our sister newspaper the China Times.

The results showed that the total shallow geothermal energy storage is commensurate with 9.5 billion tons of standard coal. The usable part is about 350 million a year, which can save 250 million tons of standard coal and reduce 500 million tons of carbon dioxide emissions in a year if the energy is fully exploited and used.

The geothermal power in sedimentary basins is commensurate with 853 billion tons of coal, while the usable part for a year is equal to 640 tons of standard coal, which can reduce 1.3 billion tons of carbon dioxide emission a year.

The survey found the total geothermal energy stored between 3,000 and 10,000 meters below the surface of the earth is about equal to 860 trillion tons of standard coal, which is 260,000 times China's total energy consumption a year.

Geothermal energy is a kind of renewable energy, originating from the original formation of the earth and radioactive decay of minerals. The ministry said the country is moving slowly to exploit the rich energy and need to push the reusable project soon.

A report by Massachusetts Institute of Technology said the United States only has to exploit 2% of its geothermal energy between 3,000 and 10,000 meters below the surface of the earth, which is able to offer electricity equal to 2,500 times the country's total electricity consumption a year.

Related Article:

"Recalibration of Free Choice"–  Mar 3, 2012 (Kryon Channelling by Lee Caroll) - (Subjects: (Old) Souls, Midpoint on 21-12-2012, Shift of Human Consciousness, Black & White vs. Color, 1 - Spirituality (Religions) shifting, Loose a Pope “soon”, 2 - Humans will change react to drama, 3 - Civilizations/Population on Earth,  4 - Alternate energy sources (Geothermal, Tidal (Paddle wheels), Wind), 5 – Financials Institutes/concepts will change (Integrity – Ethical) , 6 - News/Media/TV to change, 7 – Big Pharmaceutical company will collapse “soon”, (Keep people sick), (Integrity – Ethical)  8 – Wars will be over on Earth, Global Unity, … etc.) - (Text version)

“…  4 - Energy (again)

The natural resources of the planet are finite and will not support the continuation of what you've been doing. We've been saying this for a decade. Watch for increased science and increased funding for alternate ways of creating electricity (finally). Watch for the very companies who have the most to lose being the ones who fund it. It is the beginning of a full realization that a change of thinking is at hand. You can take things from Gaia that are energy, instead of physical resources. We speak yet again about geothermal, about tidal, about wind. Again, we plead with you not to over-engineer this. For one of the things that Human Beings do in a technological age is to over-engineer simple things. Look at nuclear - the most over-engineered and expensive steam engine in existence!

Your current ideas of capturing energy from tidal and wave motion don't have to be technical marvels. Think paddle wheel on a pier with waves, which will create energy in both directions [waves coming and going] tied to a generator that can power dozens of neighborhoods, not full cities. Think simple and decentralize the idea of utilities. The same goes for wind and geothermal. Think of utilities for groups of homes in a cluster. You won't have a grid failure if there is no grid. This is the way of the future, and you'll be more inclined to have it sooner than later if you do this, and it won't cost as much….”

PLN to Provide Solar Power to Indonesia's Remote Islands

Jakarta Globe, October 01, 2012

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State utility company Perusahaan Listrik Negara is close to completing the construction of 100 solar power plants on dozens of small and remote islands.

Vickner Sinaga, PLN operational director for eastern Indonesia, said the construction of the solar power plants, which will have a total capacity of 18,150 kilowatt peak (kWp), has been progressing smoothly. Kilowatt peak is a measure of power in solar energy devices.

The undertaking aims to provide electricity to remote populations.

“The progress [has gone] smoothly, and by the end of this year around 80 solar plants [will] have been constructed. The rest are expected [to be completed] next year,” Vickner said.

The project costs around Rp 600 billion ($63 million). According to PLN data, the solar plants currently being built are located in West Papua, North Maluku, East Nusa Tenggara, South and Southeast Sulawesi and South Kalimantan.

The government a few years ago instructed PLN to supply an additional 55,500 megawatts nationwide by 2019 and increase the electrification rate — the proportion of the population with access to the power grid — to 90 percent by 2020, from around 71 percent currently.

The first phase of the program has moved more slowly than planned, with the government admitting poor choices for contractors had delayed progress.

The government has initiated projects to add another 30,000 MW of power to the national grid by 2014 through a fast-track program using coal, geothermal and hydroelectric resources. The preferred source differs by region, Vickner said.

For remote islands, solar power plants are more economical, partly because consumption in such areas is low, he added.

“In Java, it is better to use diesel power plants when there is a lack of power. Solar power plants with 100 kWp would only last for five hours in Java,” Vickner said.

Investor Daily

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)

               

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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

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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.

Geothermals Boosted by New Price Floor

Jakarta Globe, Tito Summa Siahaan, August 30, 2012

A geothermal power plant in Wayang Windu, West Java. (GA Photo/M. Defrizal)  

      

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s debate rages on the legacy likely to be left by President Susilo Bambang Yudhoyono when he leaves office, one contender is his efforts to encourage Indonesians to embrace a lower-carbon economy.

The president is aiming to bring the contribution of renewables to the national energy mix to 25 percent by 2025 and 35 percent by 2050.

Those renewables are likely to be sourced largely from the country’s vast geothermal potential, which some estimates put at 40 percent of the world’s reserves, and hydropower.

State funding alone will not be enough to achieve such an energy mix, so private investors must be lured to participate.

Energy and Mineral Resources Minister Jero Wacik said on Wednesday that he had signed a decree that will increase the tariff for electricity generated from geothermal power plants. The decree will soon be made official in the form of regulation, probably this week, the minister added.

He said that the decree will set the minimum tariff for geothermal electricity at 10 cents per kilowatt hour in Sumatra; 11 cents per kWh in Java and Bali; 12 cents per kWh in Central, Southeast and North Sulawesi; 13 cents per kWh in North Sulawesi and Gorontalo; 14 cents per kWh for East and West Nusa Tenggara; and 18 cents per kWh for Papua.

Jero said the government realized there was a need to massively develop the nation’s geothermal potential and that investors had shown excitement toward the sector when the plan to raise the tariff was announced.

“We only utilize around 5 percent of geothermal potential. I estimate that around 6,000 megawatts of electricity can be generated [from geothermal],” Jero said.

While a more attractive tariff will increase private investor interest in geothermal projects, investment returns are just one of the limitations curbing activity.

Motofumi Kohara from the Japan International Cooperation Agency, a government body involved in Indonesia’s infrastructure development, said the issue of complicated permits and the risk that investors must carry acted as constraints on the development of geothermal projects.

Speaking at the Indonesia International Infrastructure Conference and Exhibition 2012 currently taking place in Jakarta, Kohara said the government needed to mitigate the risk borne by independent power producers during the exploration stage of geothermal projects.

Furthermore, he noted, half the geothermal projects in the second phase of a government program to fast-track the development of electricity generators require permission to use forests, another concerning issues.

While investors in geothermal projects may soon enjoy a higher return, a cautious approach is still evident in the hydropower sector.

Josef M. Ullmer, the president director of Andritz Hydro, an equipment distributor for hydropower plants, called on the government to show more commitment in its push for hydropower projects.

“Hydropower is the cheapest of all energy sources and has a 90 percent efficiency rate,” he said.

Related Article:

Pertamina’s Geothermal Push Gets a Price Boost

Pertamina’s Geothermal Push Gets a Price Boost

Jakarta Globe, August 15, 2012

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Pertamina Geothermal Energy, a subsidiary of state energy firm Pertamina, plans to develop another eight geothermal projects after the government announced that the electricity price from geothermal power plants would be increased to make the sector more attractive.

Work on the projects is expected to begin next year but there was no information on where they would be located.

Slamet Riyadhi, president director of PGE, said the company planned to spend an additional $2.7 billion on geothermal projects. That is in addition to the $6 billion it has invested in the ongoing development of 10 geothermal projects.

The new projects would generate 900 megawatts of electricity, he said. The 10 projects already in development would have an estimated combined capacity of 962 megawatts once completed.

The energy and mineral resources minister, Jero Wacik, announced last month that the purchase price of electricity produced by geothermal sources would be increased from 9.7 cents per kilowatt hour to between 10 cents and 17 cents per kilowatt hour, depending on the location.

“If the government makes this price increase official this year, we can start the process of surveying for the new projects next year,” Slamet said.

He said the internal rate of return, a measure of profitability on investment, for geothermal projects under the current price of 9.7 cents per kilowatt hour was 9 percent.

“That is well below the ideal 11 to 14 percent rate for investment in renewable energy,” Slamet said. He added that an 11 to 14 percent rate of investment return could be reached under the proposed new price.

He said the current price structure left investors reluctant to develop geothermal projects, particularly with the additional upstream risks they faced.

“Now they will have no more excuses,” he said.

Slamet said the Energy and Mineral Resources Ministry and the Forestry Ministry had signed a memorandum of understanding on the utilization of forest areas for geothermal projects that could speed up the process of obtaining permits.

“Now we can secure a permit for a geothermal project a month or two faster than usual,” he said. “This is good. Now we can achieve our target of generating 2,000MW of electricity in 2018, ahead of our previous timeline of 2020.”

Indonesia is said to hold some 40 percent of the world’s geothermal energy potential. Unlike other energy sources, however, geothermal energy cannot be transported so a power plant must be built near the source to tap it, making investment more expensive.

Investor Daily

High-Tech Reverse Osmosis Water Plant on Its Way to Riau Islands, Ministry Says

Jakarta Globe, July 28, 2012

Water vendors fill up jerry cans in Madura, East Java. The water comes
from a plant that uses reverse osmosis. (JG Photo/Safir Makki)  

   

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The national government is planning to build a plant to convert seawater into drinking water using reverse osmosis technology in Tanjung Pinang, Riau Islands, an official said on Friday.

The plant will have a clean water production capacity of 50 liters per second, said Danny Sutjiono, director for drinking water development at the Public Works Ministry.

“This is estimated to be able to meet the demand for 40,000 customers at a tariff of around Rp 8,000 to Rp 9,000 per cubic meter per second,” Danny said.

Danny said the project was now in the tender phase for construction. He said that he hoped a contract could be signed in October and that construction could start immediately thereafter.

“I hope the project will be operational at the end of 2013,” he added.

Reverse osmosis is expensive. Danny said the investment needed for the Riau Islands project was four times what freshwater projects of a similar scale would cost.

The Public Works Ministry said it would allocate Rp 40 billion ($4.24 million) to build the plant.

The winner of the tender must not only construct the physical facility but also operate the plant and build the necessary distribution pipeline network, Danny said.

“They will have to handle the construction process and the provision of water. All we want is for the seawater to be processed into drinking water and channeled to the houses,” he said.

The ministry has already built one reverse osmosis plant, on Mandangin island in Sampang, East Java, off the coast of the larger Madura island.

That plant has a similar production capacity to that of the proposed Riau Islands facility. After the Mandangin plant is officially inaugurated by Public Works Minister Djoko Kirmanto in early August, it will serve an estimated 20,000 people.

That plant’s water sells for Rp 12,000 per cubic meter per second, Danny said.

Investor Daily

Local, Chinese Firms Propose Solar Plant Costing $200m

Jakarta Globe, July 19, 2012

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Chinese state company Shanghai Aerospace Automobile Electromechanical and a local solar panel firm, Basel Investindo, have announced plans to build a 200 megawatt solar power plant, with a total investment of $200 million.

The president director of Basel Investindo, Edwin Henawan Soekowati, said Indonesia should be one of the countries with the most potential to utilize solar power, thanks to its tropical climate.

He said Indonesia should be serious in developing renewable energy such as solar power as its oil reserves dwindle.

“Indonesia is now a net importer of oil. Looking forward, fossil fuel is getting more expensive. Now the government is chasing coal, but that will also run out one day. That’s why solar panel technology must be developed,” Edwin said.

He said Basel and SAAE had signed a memorandum of understanding with the directorate general for renewable energy at the Energy and Mineral Resources Ministry. The signing was done at a renewable energy exhibition in Jakarta.

“The Chinese state company has expertise in making solar panels ... this kind of technology suits the need of Indonesia’s rural areas, which have not yet been touched by electricity,” he said.

The $600 million plant will be built in Indonesia’s eastern region.

Edwin admitted that the cost of building a solar-powered plant was more expensive than a coal-fired power plant. He said it would cost $3 million per megawatt of electricity capacity generated from solar panels, while using coal only costs $1.5 million per megawatt.

However, he argued that solar panels were cheaper to maintain.

Apart from Basel, Sharp, Samsung and Infinity are also developing solar panel technology in Indonesia.

Investor Daily

VP opens renewable energy conference 2012

The Jakarta Post, Rabby Pramudatama, Jakarta, July 17 2012

Boediono: (Antara/Puspa Perwitasari)

Vice President Boediono kicked off the 2012 Indonesia Renewable Energy and Energy Conservation conference and exhibition at the Jakarta Convention Center (JCC) on Tuesday.

The event, which was initiated by the Indonesian Renewable Energy Society (METI) and is supported by the government, is open to the public from July 17 to 19.

“The technologies for developing renewable energy have been advancing rapidly. They have also become much more economic. We are lucky to have such diverse sources of energy ... that we can rely on in the future,” Boediono said at the opening ceremony.

He said it was important to synchronize political, economic and environmental aspects to support the development of the country’s renewable energy and energy conservation policies.

Aside from the conference, as many as 75 international and local companies working in the energy field are participating in the event to showcase their products and achievements in renewable energy innovation. (iwa)

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