Indonesian state-owned PT Geo Dipa Energi is preparing development on two new geothermal areas outside its existing two geothermal working areas of Dieng, Central Java, and Patuha, West Java, as reported last week from Indonesia.
In a statement to Media Indonsia, Finance Director of Geo Dipa Energi, M Ikbal Nur reports that the two working areas are located at Mt.Arjuno Malang, East Java, and Umbul Tromoyo in Semarang, Central Java.
Geo Dipa expects to receive the two geothermal working areas through direct award and seek support from the major shareholders, namely the Minister of Finance Sri Mulyani.
To finance the project, Geo Dipa expects investment from PT Sarana Multi Infrastructure, a state-owned investment company, to fund exploration activities through funds earmarked for geothermal exploration. “These funds as an initial investment for exploration will help the projects to become bankable to attract investment,” he said.
Both geothermal areas are estimated with a potential of each 150 MW with an expected investment demand of $5 million/ MW or around $1.5 billion of total investment cost for both developments.
Geo Dipa expects to become the second largest geothermal state-owned enterprise after Pertamina Geothermal Energy. “That we can make happen because we have the human resources,” said Director of Geo Dipa Energi Riki Firmandha Ibrahim.
In addition, Geo Dipa will start exploration on the Dieng geothermal area in this year.
Source: Media Indonesia