July 17, 2008

Five Sites Proposed for Geothermal Plants in Indonesia’s West Java

Text of report in English by website of independent Indonesian news magazine Tempo on 17 July

[by Ahmad Fikri]

Bandung: West Java Mining and Energy Office has proposed five new geothermal sites to be considered as power plants. They are located at Mount Papandayan, Ciremai, Cikuray, Guntur Masigit and Malabar.

"Mount Papandayan and Ciremai are still under [state oil concern] Pertamina's management," West Java Mining and Energy Office chief Tb. Hisni [said] in Bandung yesterday. For these two sites in particular, Hisni said, it needed to be discussed with the Mining and Energy Department. Previously, Pertamina agreed to hand over these sites to the government. "The government will then hand them over to the West Java Regional government."

According to Hisni, a survey team has completed a study of the areas' potential as geothermal sites. According to the survey at Mount Papandayan alone, the geothermal potential can reach 225 MW, while in Mount Ciremai 250 MW and in the other three locations, Cikuray, Guntur Masigit and Malabar, are predicted to produce 100 MW to 150 MW of electricity.

The allocation of the three locations as sources of power generation has been submitted to the governor. "We will propose a more detailed survey to the mining and energy minister later. After that, the sites will be offered to interested investors in a bidding process," said Hisni.

According to Hisni, the tender for power plants in Mount Tangkuban Perahu, Cisolok-Cisukarame and Mount Tampomas can be conducted soon, in order to enhance electricity supply in Java- Bali.

West Java Governor Ahmad Heryawan said he had signed a decree allowing eight companies to take part in the first stage of the tender. The winners are to be announced today (Thursday) [17 July].

Hisni added he is currently lobbying Pertamina so that West Java can offer minimum contracts of work, given there are 100 wells in West Java whose production potential is less than 1.000 [as published] barrels per day. "The wells have not been well exploited yet," he said.

Hisni has also requested Pertamina to cooperate with a local company, PT Jawa Barat Energi. Cooperation to manage Pertamina's gas well in Bagelan, Bekasi, has been done through its subsidiary. PT Jawa Barat Energi is one of the subsidiaries of PT Jasa Sarana, whose 70 per cent of its stock is owned by the West Java regional government.

Apart from the marginal wells, West Java still has a number of oil prospects. Recent explorations discovered five new oil sources, some of them in the coastal areas of Indramayu and around Bekasi.

Originally published by Tempo website, Jakarta, in English 17 Jul 08.

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