The winds of change are blowing through Indonesia’s energy landscape, and they’re carrying the promise of geothermal energy into the spotlight. With President Prabowo Subianto now at the helm, the government is poised to leverage this abundant resource as a linchpin in its quest for energy self-sufficiency. Economic expert Fahmy Radhi from Gadjah Mada University has stepped up to back this initiative, emphasizing the need for a robust investment climate to attract crucial funding in the geothermal sector.
Fahmy’s insights are particularly compelling. He pointed out that the previous administration under President Joko “Jokowi” Widodo successfully drew significant Chinese investments through substantial fiscal incentives for nickel downstream projects. This precedent suggests that a similar strategy could work wonders for geothermal energy. “Offering incentives to investors interested in geothermal projects will undoubtedly make the sector more attractive,” Fahmy stated, underscoring the importance of financial allure in energizing this sector.
However, the road ahead is not without its bumps. Geothermal sources are often nestled in remote, mountainous terrains that pose logistical challenges. Fahmy highlighted the necessity of not just investing in power generation technologies but also in the infrastructure needed to access these energy reserves. He advocated for the government to play a proactive role in building essential infrastructure—think roads and transport networks—using central or regional budgets. This kind of groundwork is crucial; without it, the geothermal potential remains just that—potential.
As Indonesia grapples with its ambitious net-zero emission target by 2060, the current clean energy mix of just 12.5 percent is a stark reminder of the work that lies ahead. The government aims for a 23 percent clean energy share by 2025, a target that seems daunting but achievable with the right focus and commitment. Fahmy believes that if the Prabowo administration can keep its eye on the renewable energy prize, free from the clutches of oligarchic interference, Indonesia could significantly reduce its dependence on foreign energy sources by the end of Prabowo’s term in five years.
In his inaugural address, President Prabowo exuded confidence, declaring that Indonesia has the potential to harness a variety of renewable energy sources, including geothermal, coal, and hydropower. “We have ample underground geothermal energy, a vast supply of coal, and significant hydropower resources. My government will focus on achieving energy self-sufficiency,” he asserted. This ambitious vision sets the stage for transformative developments in the energy sector.
As the government embarks on this journey, the stakes couldn’t be higher. The success of these initiatives could redefine Indonesia’s energy landscape, positioning the nation as a leader in renewable energy within the Southeast Asian region. The interplay of investment incentives, infrastructure development, and unwavering government support will be crucial in turning geothermal dreams into reality. The future is ripe with potential, and the next few years will be pivotal in determining whether Indonesia can truly harness its geothermal wealth and move towards a more sustainable energy future.
