Australia Keen To Invest In RI's Geothermal Power Plants

Jakarta (Antara Bali) - Australia is interested in investing in geothermal power plants with US$ 500 million, the head of the Investment Coordinating Board (BKPM) Franky Sibarani said in a press release received by ANTARA on Friday.

An Australian investor is seriously considering investing in the geothermal sector after making an assessment through state-owned electricity company PLN, and meeting with the local administration.

"We hope they can immediately apply for principle permission to BKPM to start implementing the investment. They have already entered into an agreement with PLN and the local administration, which is primarily related to economic and environmental benefits," Sibarani said.

According to him, the power business permission procedure had undergone a positive change from 49 permissions being granted within 923 working days to 25 permissions being approved within 256 working days. Similarly, the 13 permits granted in the forestry sector also reflected a simplified process and reduced time consumption.

Sibarani said he is optimistic that the geothermal investment would support the government's efforts to build a 35,000 megawatt (MW) power plant and develop the country's renewable energy potential.

He added that besides geothermal energy, Australian investors were also interested in micro hydro and solar power plant development.

"We recommend that they invest in solar power plants in Nusa Tenggara," he added.

Earlier, President Joko Widodo said the government had boosted the growth of geothermal power plants by facilitating land acquisition and land use permits. (WDY)