The nation has approximately 130 volcanoes, which would hold about 40% of the world’s geothermal potential, Agence France-Presse (AFP) reported.
Nazarudin Kiemas, who headed a parliamentary committee on the new law, was quoted as saying on the Legislature’s website: "Indonesia’s need for energy keeps increasing. There is abundant potential for geothermal energy."
Currently, Indonesia is producing over 1,300MW of its electricity from the clean source, though it has potential to generate more than 28,000MW of electricity through geothermal energy.
The country’s geothermal energy industry has not been able to attract investors, due to red tape and legal uncertainty, but now the government is seeking to speed up investment in the sector with the new law.
The new law does not consider the exploration for geothermal energy and setting up of facilities under the mining category.
