ESDM Issues Two Regulations to Accelerate Geothermal “Energy Treasure” Development
· by S. Kalsum
JAKARTA — Indonesia’s Ministry of Energy and Mineral Resources (ESDM) has enacted two ministerial regulations in the geothermal sector: Permen ESDM No. 33/2018 on the Management and Utilization of Geothermal Data and Information for Indirect Use, and Permen ESDM No. 37/2018 on the Offering of Geothermal Working Areas (WKP), Issuance of Geothermal Permits (IPB), and the Assignment of Geothermal Undertakings.
Purpose of the New Rules
According to the Director General of New, Renewable Energy and Energy Conservation (EBTKE) at ESDM, Rida Mulyana, the two regulations complement existing frameworks and clarify operating rules for geothermal companies, particularly for indirect utilization.
“These are part of our continued efforts to complete the rulebook for geothermal companies—especially for indirect utilization,” Rida said in a statement in Jakarta, Saturday (21/7/2018).
Legal Basis & National Energy Goals
Both regulations are derivative rules that elaborate provisions not fully detailed in Government Regulation (PP) No. 7/2017 on Geothermal for Indirect Utilization. Rida emphasized that the new rules are expected to help accelerate Indonesia’s renewable energy mix (EBT) target of 23% by 2025 under the National Energy Policy (KEN).
“This is our push to fast-track the target as mandated in KEN. A key factor is having firm rules that make it possible to implement the program,” he noted.
Supportive Business Climate & Simplified Processes
Rida added that geothermal development requires strong government support—especially in simplifying and easing business processes—to foster a more conducive investment climate so the industry can grow sustainably.
What Permen ESDM No. 33/2018 Covers
Permen 33/2018—mandated by Articles 25, 33, and 112 of PP 7/2017—aims to provide ease and certainty for stakeholders in utilizing geothermal data and information transparently, and to support government drilling, particularly regarding compensation for the price of geothermal data and information.
- Service policy: Geothermal data and information services are provided to stakeholders under applicable terms and conditions, free of charge.
- Access levels: General data and interpreted data are open access; raw and processed data can be obtained through requests under non-disclosure agreements (with exceptions for data transfer in geothermal business activities by IPB holders or assignees).
“The spirit at ESDM now is: make the data free. Please use it—no one loses from that,” Rida said.
What Permen ESDM No. 37/2018 Regulates
Permen 37/2018—mandated by Articles 67 and 68 of PP 7/2017—provides clear guidelines and legal footing for stakeholders on the procedures and mechanisms for:
- Offering geothermal working areas (WKP) via tender;
- Issuing Geothermal Permits (IPB);
- Assigning geothermal undertakings to Public Service Agencies (BLU) / State-Owned Enterprises (BUMN), including criteria for WKP that can be assigned.
The regulation also details assignment mechanisms for BLU/BUMN as a policy breakthrough in geothermal governance under PP 7/2017.
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