Geothermal development permit takes only 5 days
This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Investor Daily - Izin pengembangan geothermal cukup 5 hari
20 November 2024
Jakarta, ID – The Energy and Mineral Resources Ministry (MoEMR) is reducing the time required to obtain a permit for geothermal development to five days. Previously, it took 18 months to obtain such a permit.
“We are reducing the process to obtain a permit for a geothermal programme. The permit process is being cut down from 18 months to five days,” New Renewable Energy and Energy Conservation (EBTKE) Director General of the MoEMR Eniya Listiani Dewi said, cited by Antara in Jakarta on Tuesday (19/11/2024).
He explained that the significant part of the process being cut down is the Online Single Submission (OSS), which is achieved by the submission of permit requirements at the start to obtain the Suitability of Space Utilisation (KKPR) and the Environmental Impact Analysis (EIA) licences.
“We will eliminate the process at the start. So, if the drilling location has been determined, which most likely only requires a small area that does not exceed multiple hectares, the permit will be issued,” he stated.
Furthermore, Eniya stated that the effort to reduce the permit issuance process will soon be realised, as discussions surrounding changes in relevant regulations, such as the Environment and Forestry Ministry Regulation and Government Regulation Number 5 of 2021 on the Procedure for the Issuance of Technical Approval and Operational Feasibility Certificate in Environmental Pollution Control Sector, have been conducted.
Besides that, Eniya said that her agency is increasing the Internal Rate of Return (IRR) of investment by 1.5%. This is being implemented to attract investors to collaborate in advancing the domestic geothermal sector. “So, investment will be far more attractive in situations such as these,” she stated.
