Hitay to Invest 10,4 million USD

13 March 2013

Ebtke.esdm.go.id – A corporate venture capital group from Turkey, Hitay, is gearing up to invest 10,4 million USD to conduct preliminary surveys in eight geothermal working area in Indonesia. These surveys will be carried out by Hitay’s business unit in Indonesia.

Among those geothermal working area are Mount Tandikat and Singgalang, Mount Dingin, Mount Talamau. Other than that, also Runcing, Lawang, Tanjungsakti, Rawas, and Bromo-Tengger volcanic area.

However, for the Rawas and Runcing area, due to consideration of conservation forest area, the survey activities will be shifted to East Java area and has been approved by the East Java Governor.

Hitay stated that one of the reason for their investment is because of Indonesia’s huge reserve of 40% of world geothermal potential, as well as the ever increasing need of electricity considering Indonesia as the fourth most populated country in the world (240 million), with the annual economic growth of 7% that calls for investment in infrastructure.

Indonesia is estimated to have 29 GW potential of geothermal, but currently the usage is not yet up to the maximum (yet only 1,341MW), from the Sibayak installed capacity 12MW, Mount Salak (377MW), Wayang Windu (227MW), Kamojang (200MW), Darajat (270MW), Dieng (60MW), Lahendong (8-MW), Ulubelu (110MW), and finally Ulumbu (2×2,5MW); meanwhile other ASEAN country such as Philippine has managed to develop and operated 1,904MW.

Up to now, a total of 58 working area consisted of 19 existing ones (granted before the issuance of the Law 27/2003), and 39 new working area (after issuance of Law 27/2003), where 19 working area have been granted IUP (permit for mining activity), and from 19 existing area already 9 of them fully operating.