Member of the House Commission VII, Mulyanto, speaks during a recess working visit to Indonesia Power’s PLTP Gunung Salak in Bogor Regency, West Java, on Friday (8/10/2021). Photo: Hira/nvl

Member of the House Commission VII—dealing with energy affairs, Mulyanto, called on the government to engage itself in the development of Geothermal Power Plant (PLTP) in Indonesia, arguing that geothermal exploration cost, which is to locate a geothermal reservoir, will be quite high and risky because finding the reservoirs during exploration has not always been successful.

"So, when many have failed to find (geothermal resources), it has to be compensated to the tariff of Electricity Generation Basic Cost (BPP)," Mulyanto said on the sidelines of a recess working visit to Indonesia Power's PLTP Gunung Salak in Bogor Regency, West Java, on Friday (8/10/2021).

He said the issue with the new and renewable energy, particularly PLTP products, would be its high tariffs. For instance, the tariff for electricity generated by PLTP Gunung Salak is set above Rp 1,000/kWh, or US$0.08/kWh, while tariffs for electricity generated by hydroelectric power plant (PLTA) and solar power plant (PLTS) range from US$0.04/kWh to US$0.05/kWh.

The lawmaker from the Prosperous Justice Party (PKS) said the PLTP heavy construction costs could be reduced as long as the government is willing to engage in the exploration process, given that finding a geothermal reservoir involves considerable risk. If that happens, PLTP will be able to compete with other energy-resource power generators such as PLTA and PLTS.

The new and renewable energy contributes 11 percent to the nationwide energy mix, while the target is set to 23 percent in 2025 and 30 percent in 2030. "Well, it's still far below the target. According to the government's General Planning for National Energy (RUEN), the share of new and renewable energy is set to 23 percent in 2025. Now it is still ten-point something, half of the target," he said.

The new and renewable energy development in Indonesia is still far below target and needs to be promoted by the government’s involvement through gradual implementation of electricity procurement plan (RUPTL). He said he would support if the government had plans to merge existing companies such as Geo Dipa Energi, Pertamina Geothermal Energy, and Indonesia Power into one holding company.

With a fairly large business entity, it is expected to compensate for the costly capital requirement to start the PLTP. "Well, I agree because that will facilitate further exploration, including its infrastructure," he said. "If that happens, the BPP can be reduced." (hal/sf-mutt)