The Ministry of Energy and Mineral Resources (MEMR) of Indonesia is considering making the Pertamina subsidiary that runs the geothermal activity, Pertamina Geothermal Energy (PGE), a separate entity in order to allow the Government to inject funds for expansion. The MEMR is considering two options for PGE, either making it a fully owned state company or restructure it to be a special public service agency. The country's only state-owned company involved in the geothermal sector, Geodipa, is currently embroiled in a legal case, which hinders the government from interfering in the process.
PGE currently has 437 MW of installed geothermal capacity power plants and plans to expand its capacity to 682 MW by 2017 and to 2.3 GW by 2025. PGE estimates that it will have to invest US$2.5bn by 2019 to achieve the target.
Thanks to its geographical location in the Pacific Ring of Fire, Indonesia is estimated to have potential of up to 29 GW of geothermal generating capacity. However, at end of July 2015, the country reported only 1,450 MW of installed capacity, i.e. 5% of the potential, and 2,500 MW under construction.
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