With the increasing prices of fuel, diesel and premium grade in particular, the government has to find other sustainable and environmentally friendly alternatives.
Solar power, wind energy, biofuel and geothermal energy seem to have not been taken seriously. This is probably due to inconsistent regulations, red-tape, technology, coordination between misnistries and capitalization of the projects, which lack investment from foreign investors.
The potential of geothermal energy sources in Indonesia is around 40 percent, the world’s largest. This is due to geographical conditions including volcanoes and tectonic lithospheres. Unfortunately only 4 percent (1.341 gigawatt [GW]) has been utilized. This country is the third user of geothermal energy after the US and the Phillipines. It is to be noted that the geothermal technology was mastered in Indonesia in 1928. Geothermal is neither exportable or transportable. It should be used for electricity generation, as stated by the Indonesia Association of Geothermal in February this year.