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Industry group urgently calls for regulations on geothermal direct use in Indonesia

The Association of Indonesian Geothermal Producing Regions (Asosiasi Daerah Penghasil Panas Bumi Indonesia / ADPPI) in Indonesia has issues an urgent call for the Government to issue regulations on the direct use applications of geothermal energy, particularly in the tourism sector. According to the association, this will help in the growth of the sector while ensuring that the industry conforms to standards of sustainable management and utilization.

“It’s time for the government to finalize the government regulation on direct geothermal utilization so that the potential for geothermal tourism can be utilized optimally, sustainably, and provide real benefits to the surrounding community,” said Hasanuddin, the General Chair of the ADPPI.

As Article 15 of the Geothermal Law of 2014 states, the direct utilization of geothermal energy must have regulations defined by the government. To date, the Indonesian government has only issued Government Regulation No. 7 of 2017, which concerns geothermal power generation.

According to the ADPPI, the regulatory vacuum with regards to geothermal direct utilization, particularly in tourism, has resulted in direct use applications being carried out across several regions in Indonesia without any clear standards or legal certainty.

Hasanuddin emphasizes that regulations will also help establish standards that ensure that geothermal resources are utilized in a manner that is sustainable and environment-friendly. This also protects the host communities of these projects and provides a framework for communities to receive economic benefits. Lastly, having a legislative framework will allow access to government support, incentives, and investment for geothermal-based tourism and other economy sectors.

The Lao-Lao Geopark, operated by Pertamina Geothermal Energy, in Lahendong, Indonesia (source: Pertamina Geothermal Energy)

An inclusive legislation process

In drafting the regulations for geothermal direct use, the ADPPI encourages the government to include all stakeholders – including the provincial, city, and district government, business owners, and academics. This is important so that the regulations are in line with conditions on the ground and significantly stimulate economic growth.

The ADPPI argues that geothermal tourism has already proven to be a source of economic growth for many regions in Indonesia. Clear regulatory support will help support the growth of this industry, accelerating its economic benefits while making sure that geothermal resources are used responsibly and sustainably.

Source: Kabariku