Seminar Nasional ke-3, Fakultas Teknik Geologi, Universitas Padjadjaran, 28 Mei 2016

1

Geothermal Potential and Development in Indonesia

Prof. Yusuf L. Henuk, Ph.D1 and Analiser Halawa

2

1Fakultas Pertanian, Universitas Sumatera Utara, Medan, SUMUT

2Fakultas Teknologi Mineral, Institut Sains dan Teknologi TD

Pardede, Medan, SUMUT

Corresponding & Presenting Author1: E-mail: yusufhenuk62@live.com –

Mobile: +62 81353 705862

Abstract

Geothermal energy is energy derived from the heat of the earth. The earth’s centre is a distance of

approximately 4000 miles and is so hot that is molten. Temperatures are understood to be at least

500oC. Heat from the centre of the centre of the earth conducts outwards and heat up the outer layers of

rock called the mantle. When this type of rock melts and becomes molten it is called magma. Magma

can reach just below the earths surface. Rain water sometimes seeps down through geological faults

lines and cracks becoming super heated by the hot rocks below. Some of this super heated water rises

back to the surface of the earth where it emerges as hot springs or even geysers. Sometimes the hot

water becomes trapped below the surface as a geothermal reservoir. The rapid increase in fossil-fuel

based energy consumption, which is subject to volatility in the world oil market, is the main challenge

facing the country’s energy supply. At the same time, growing greenhouse gas emissions from the use

of fossil fuels imposes costs on the economy and society. Geothermal energy provides one solution to

these issues. It is a source of clean, renewable and environmentally friendly energy for power

generation. Furthermore, as an indigenous and non-tradable energy source, it will enhance the country’s

energy security by serving as a natural hedge against the fluctuations of global fossil fuel prices.

Sitting on the so-called “Pacific ring of fire” with nearly 129 active volcanoes, Indonesia is blessed

with enormous geothermal resources. The geothermal energy reserves that have been confirmed span

from Sumatra to East Nusa Tenggara have the potential to produce up to 29,000 megawatts of

electricity or 40% of the world’s geothermal resources. Half of these potential are found in Java and

Bali, the most densely populated islands in Indonesia. The largest potential reserve is in the island of

Sumatra, with 5,983 MW, however only 380 MW has been proven. In 2010 The Energy and Mineral

Resources Ministry has revised the country’s geothermal potential to 29,215 megawatts across 276

spots, a figure equivalent to 12 billion barrels of oil and almost twice the size of Indonesia’s oil

reserves. The geothermal energy that is currently being generated in Indonesia totals 4% of this

potential figure at 1,200 MW. As a comparison guide the United States currently produces 4,000 MW

and the Philippines currently produces 2,500 MW. However, The Government of Indonesia has

recognized the role of geothermal energy and has put major efforts into promoting its development with

initiatives such as the Roadmap of Geothermal Development 2012–2025, the National Energy Policy

2014, the issuance of a new geothermal tariff in 2014 and the Geothermal Law No. 21 of 2014. The

Government of Indonesia is targeting to increase the capacity of geothermal power plant (PLTP) in the

next ten years by 300 MW per year. Based on the roadmap of geothermal development power plants, it

is expected to reach 12,000 MW by 2025. A total of 58 geothermal working area (GWA) in Indonesia

with seven existing geothermal fields already in operation: (1) Sibayak (12 MW), (2) Salak (337 MW),

(3) Puppet Hindu ( 227 MW), (4) Darajat (270 MW), (5) Kamojang (220 MW), (6) Dieng (60 MW),

and (7) Lahendong (80 MW). The conclusion is the geothermal energy that is currently being generated

in Indonesia totals 4% of this potential figure at 1,200 MW. As a comparison guide the United States

currently produces 4,000 MW and the Philippines currently produces 2,500 MW. Indonesia’s potential

is 40% of the world’s geothermal resources. If it is used for 30 years, it would be equivalent to 12

billion barrels of oil to operate power plants and almost twice the size of Indonesia’s oil reserves. The

potential use of new renewable energy geothermal abundant buried deep in the bowels of the earth

Indonesia should be used due to hidden or unexpected (a blessing in disguise) for the welfare of all the

people of Indonesia.

Key words: Geothermal Energy, Potential, Development, Indonesia

Seminar Nasional ke-3, Fakultas Teknik Geologi, Universitas Padjadjaran, 28 Mei 2016

2

What is Geothermal Energy?

The term “geothermal” origines from two Greek words “geo” and “therm”. The Greek word

“geo” meant the earth whilst their word for “therm” meant heat from the earth. Geothermal

energy is energy derived from the heat of the earth. The earth’s centre is a distance of

approximately 4000 miles and is so hot that is molten. Temperatures are understood to be at

least 500oC. Heat from the centre of the centre of the earth conducts outwards and heat up the

outer layers of rock called the mantle. When this type of rock melts and becomes molten it is

called magma. Magma can reach just below the earths surface. Rain water sometimes seeps

down through geological faults lines and cracks becoming super heated by the hot rocks

below. Some of this super heated water rises back to the surface of the earth where it emerges

as hot springs or even geysers. Sometimes the hot water becomes trapped below the surface as

a geothermal reservoir (see Figure 1; Ryan, 2009). According to Geothermal Energy

Association (2003), heat has been radiating from the center of the Earth for some 4.5 billion

years. At 6437.4 km (4,000 miles) deep, the center of the Earth hovers around the same

temperatures as the sun's surface, 9000°F (5,000°C). The geothermal system as simple as if

we boiled the water (Figure 1a). It has been estimated that 42 million megawatts (MW) of

power flow from the Earth’s interior, primarily by conduction. Geothermal energy is site

specific, cannot be stored, and also cannot be transported. It is a renewable resource. One of its

biggest advantages is that it is constantly available. The constant flow of heat from the Earth

ensures an inexhaustible and essentially limitless supply of energy for billions of years to

come. It is a green energy because it produces lower green house gasses (GHG) than natural

gas, oil and coal (Figure 1b). The rapid increase in fossil-fuel based energy consumption,

which is subject to volatility in the world oil market, is the main challenge facing the country’s

energy supply. At the same time, growing greenhouse gas emissions from the use of fossil

fuels imposes costs on the economy and society. Geothermal energy provides one solution to

these issues. It is a source of clean, renewable and environmentally friendly energy for power

generation. Furthermore, as an indigenous and non-tradable energy source, it will enhance the

country’s energy security by serving as a natural hedge against the fluctuations of global fossil

fuel prices.

Figure 1a. Section of Earth, Geothermal Reservoir, and Analogy of Geothermal Energy.

Seminar Nasional ke-3, Fakultas Teknik Geologi, Universitas Padjadjaran, 28 Mei 2016

3

Figure 1b. Comparison of Geothermal, Natural Gas, Oil and Coal CO2 Emissions.

Brief History of Geothermal Power Plant Development in Indonesia

Historically, at the Larderello, Italy dry steam field, Prince Piero Ginori Conti first proved the

viability of geothermal power plant technology in 1904 (Figure 2a). Larderello is still

producing today. For Indonesia, the first proposal on energy from volcanoes came in 1918

during the Dutch colonial era and proposed by JB Van Dijk in 1918 to harness geothermal

energy resources in the area of the crater Kamojang, West Java, is the starting point for the

history of geothermal development in Indonesia. By coincidence, the event coincided with the

beginning of geothermal in the world, namely in Larderello, Italy, which also occurred in

1918. The difference is, if in Indonesia is still a proposal, the Italian business has produced

natural steam that can be harnessed to generate electricity.

In 1926, five test borings were drilled in Java's Kawah Kamojang field (Figure 2b), the third

being the first that was successful in 1928. Kamojang geothermal field, with the well named

KMJ-3, which produced steam in 1926, was a milestone in geothermal drilling the first

exploration by the Dutch colonial government. Until the year of 1928 has made five

geothermal exploration drilling, but the one succeeded in producing steam was only wells

KMJ-3 with the depth of 66 meters. Until now KMJ-3 still produces natural dry steam with a

temperature of 1400oC and pressure of 2.5 atmospheres. Since 1928 Indonesia’s geothermal

activity practically stopped and only resumed in 1964.

The first survey by geothermal expert is started in 1964, followed by more specific surveys in

1968. Six exploration wells were drilled in Kamojang, West Java from 23 September to 27

November 1972. The well No. 6 is then used for experimental production well and the first

monoblock of 250 MW was inaugurated on 27 November 1978. The first commercial power

plant Kamojang I of 30 MW is then built, and was inaugurated on 29 January 1983. Then, it

was still discharging super heated steam from a depth of 66 meters at a temperature of 140°C

and a pressure of 3.5 to 4 bars. A prefeasibility study for electricity generation was initiated in

1972 by Geothermal Energy New Zealand. The first generator was inaugurated in 1983 by

President Suharto and subsequently expanded in 1987. Current capacity is 140 MW. Since the

mid-1980s, Chevron, the world's largest geothermal power producer, has operated two

geothermal fields in West Java at Salak and Darajat with a combined capacity of around

365 MW.

Between 1989 and 1997 explorations were conducted at the Sibayak geothermal field in

northern Sumatera, and subsequently a 12 MW plant has been placed in operation. In 1991, the

Indonesia Geothermal Association (Asosiasi Panasbumi Indonesia - API), a non-governmental

Seminar Nasional ke-3, Fakultas Teknik Geologi, Universitas Padjadjaran, 28 Mei 2016

4

organization, was established to promote geothermal energy. It has approximately 500

members including geothermal experts, companies, and stakeholders. The Wayang Windu

Geothermal Power Station in West Java, owned by British Star Energy, has been in operation

since 2000. It currently comprises two units with a total capacity of 227 MW. There are plans

for a third unit of 127 MW which is expected to be on-stream by mid-2013.

In 2014, the issuance of The Law No. 21 Year 2014 on Geothermal on 17 September 2014 and

Minister Energy and Mineral Resources Decree No. 17 Year 2014 on Ceiling Tariff for

Electricity from Geothermal Power Plant (Figure 2c) were the breakthrough from the

Government in order to unlock and accelerate the geothermal development in Indonesia to

meet the vision 25/25.

Figure 2a. First Geothermal Power Plant Built in 1904 in Larderello, Italy.

Figure 2b. Five Test Borings were Successfully Drilled in Java's Kawah Kamojang Field in

1928.

Kawah

Kamojang

Seminar Nasional ke-3, Fakultas Teknik Geologi, Universitas Padjadjaran, 28 Mei 2016

5

Commercial

Operating

Date (COD)

Group Tariff

(Cent US$/kWh)

Region I

(Sumatera,

Java, Bali)

Region II

(Sulawesi, NTB,

NTT, Halmahera,

Maluku, Papua,

Kalimantan)

Region III

(Region located in Region I and

Region II were isolated and meeting

the needs of most of the electrical

power plant (using fuel oil)

2015 11.8 17.0 25.4

2016 12.2 17.6 28.8

2017 12.6 18.2 26.2

2018 13.0 18.8 26.6

2019 13.4 19.4 27.0

2020 13.8 20.0 27.4

2021 14.2 20.6 28.3

2022 14.6 21.3 28.0

2023 15.0 21.9 28.7

2024 15.5 22.6 29.2

2025 15.9 23.3 29.6

(Source: Decree of Minister Energy and Mineral Resources Number 17 Year 2014).

Figure 2c. New Geothermal Ceiling Tariff in Indonesia.

Geothermal Potential in Indonesia

Sitting on the so-called “Pacific ring of fire” with nearly 129 active volcanoes (Figure 3ab),

Indonesia is blessed with enormous geothermal resources. The geothermal energy reserves that

have been confirmed span from Sumatera to East Nusa Tenggara have the potential to produce

up to 29,000 megawatts of electricity or 40% of the world’s geothermal resources. Half of

these potential are found in Java and Bali, the most densely populated islands in Indonesia.

The largest potential reserve is in the island of Sumatera, with 5,983 MW, however only 380

MW has been proven.

In 2010 The Energy and Mineral Resources Ministry has revised the country’s geothermal

potential to 29,215 megawatts across 276 spots (Figure 3c), a figure equivalent to 12 billion

barrels of oil and almost twice the size of Indonesia’s oil reserves. The potential is classified as

Proven Reserve: 2,888 MW, Probable Reserve: 1,050MW, Possible Reserve: 12, 529 MW.

The potential classified as Hypothetic Resources: 4, 391 MW and as Speculative Reserve: 8,

780 MW. The geothermal energy that is currently being generated in Indonesia totals 4% of

this potential figure at 1,200 MW. As a comparison guide the United States currently produces

4,000 MW and the Philippines currently produces 2,500 MW (Figure 3d). However, The

Government of Indonesia has recognized the role of geothermal energy and has put major

efforts into promoting its development with initiatives such as the Roadmap of Geothermal

Development 2012–2025 (Figures 3ef), the National Energy Policy 2014, the issuance of a

new geothermal tariff in 2014 and the Geothermal Law No. 21 of 2014 (Ibrahim, 2011;

Halawa and Henuk, 2014; Poernomo et al., 2015).

Seminar Nasional ke-3, Fakultas Teknik Geologi, Universitas Padjadjaran, 28 Mei 2016

6

Figure 3a. Pacific Ring of Fire and About 129 Volcanoes Active in Indonesia.

Figure 3b. Major active volcanoes in Indonesia.

Seminar Nasional ke-3, Fakultas Teknik Geologi, Universitas Padjadjaran, 28 Mei 2016

7

Figure 3c. 276 Locations with Geothermal Energy Potential Had Been Identified in

Indonesia.

Figure 3d. World’s Top Geothermal Electricity Producers and Capacity Holders.

Seminar Nasional ke-3, Fakultas Teknik Geologi, Universitas Padjadjaran, 28 Mei 2016

8

Figure 3e. Indonesia’s Geothermal Potential to 29,215 Megawatts Across 276 Spots.

Figure 3f. The Geothermal Energy That is Currently Being Generated in Indonesia Totals 4%

of This Potential Figure at 1,200 MW.

Seminar Nasional ke-3, Fakultas Teknik Geologi, Universitas Padjadjaran, 28 Mei 2016

9

Geothermal Development in Indonesia

As shown in Figures 3ef, The government of Indonesia is targeting to increase the capacity of

geothermal power plant (PLTP) in the next ten years by 300 MW per year. Based on the

roadmap of geothermal development power plants, it is expected to reach 12,000 MW by 2025

(Figures 3ef & 4a). A number of efforts have been taken by the Government of Indonesia to

encourage the development of geothermal power plants starting from regulation, revision of

electricity tariff rates to unlock the potential for private sector investment. Currently, there are

58 potential projects in geothermal working areas. 26 projects will be tendered in 2014,

including Simbolon, Samosir, in North Sumatera with a capacity of 155 MW; Mt. Talang in

West Sumatra with a capacity of 35 MW; and Umbul Telomoyo, Central Java with a capacity

of 120 MW. Until 2012, a total of 58 geothermal working area (GWA) in Indonesia with seven

existing geothermal fields already in operation: (1) Sibayak (12 MW), (2) Salak (337 MW), (3) Puppet

Hindu ( 227 MW), (4) Darajat (270 MW), (5) Kamojang (220 MW), (6) Dieng (60 MW), and (7)

Lahendong (80 MW) with installed electricity power plant has reached 1,226 MW covering the

islands of Sumatra, Java, Bali-Nusa Tenggara, and Sulawesi (Figure 4bc). Besides these, the

Government of Indonesia has issued 26 new geothermal working areas (GWA or Wilayah

Kerja Panasbumi – Figure 4d). Up to 58 GWA are expected to be offered to investors (Figure

4e). In 2012, most of new and new renewable energy in Indonesia met by biomass, followed

by hydroelectric, geothermal, and biofuels. But at the end of 2025, geothermal for power

generation will dominate, followed by hydro, biofuels, and biomass consecutively (Figure 4f –

Sugiyono, 2014).

Figure 4a. Geothermal Road Map in Indonesia.

Seminar Nasional ke-3, Fakultas Teknik Geologi, Universitas Padjadjaran, 28 Mei 2016

10

Figure 4b. Location of The Biggest Seven Installed Geothermal Power Plant Capacity in

Indonesia.

Figure 4c. The Biggest Seven Installed Geothermal Power Plant Capacity in Indonesia.

Seminar Nasional ke-3, Fakultas Teknik Geologi, Universitas Padjadjaran, 28 Mei 2016

11

Figure 4d. 26 New Geothermal Working Areas in Indonesia.

Figure 4e. Total Of 58 GWA Are Expected To Be Offered To Investors.

Seminar Nasional ke-3, Fakultas Teknik Geologi, Universitas Padjadjaran, 28 Mei 2016

12

Figure 4f. Projection of New and Renewable Energy Supply in Indonesia.

Conclusions

The geothermal energy that is currently being generated in Indonesia totals 4% of this

potential figure at 1,200 MW. As a comparison guide the United States currently produces

4,000 MW and the Philippines currently produces 2,500 MW. Indonesia’s potential is 40% of

the world’s geothermal resources. If it is used for 30 years, it would be equivalent to 12 billion

barrels of oil to operate power plants and almost twice the size of Indonesia’s oil reserves. The

potential use of new renewable energy geothermal abundant buried deep in the bowels of the

earth Indonesia should be used due to hidden or unexpected (a blessing in disguise) for the

welfare of all the people of Indonesia.

COAL

Geothermal

Seminar Nasional ke-3, Fakultas Teknik Geologi, Universitas Padjadjaran, 28 Mei 2016

13

References

Geothermal in Indonesia Low Carbon Development. 2011.

http://www.thepmr.org/system/files/documents/Geothermal+in+Indonesia+Low+Carbo

n+Development+R2.pdf. Retrieved 22nd

February 2016.

Halawa, A. and Henuk, Y.L. 2014. Potensi Pengembangan Energi Baru Terbarukan Panas

Bumi di Indonesia. Pp.: B-25 – B-44. In: Proceedings of Seminar Nasional Sains dan

Teknik Undana II, 15 – 16 Oktober 2014, Hotel Aston, Kupang – NTT

(http://www.kompasiana.com/prof_yusufhenuk/potensi-pengembangan-energi-

terbarukan-panas-bumi-di-indonesia_54f89139a3331168158b458c). Retrieved 22nd

February 2016

Ibrahim, H.D. 2011. Geothermal Energy Development in Indonesia. A paper presented in the

World Geothermal Energy Summit 2011, Arc Media Global, Manila, 8 December

2011.

Jarman. 2012. Geothermal Power Plant Development in Indonesia. A paper presented at

“Forum for East Asia-Latin America Cooperation”. November 13th

, 2012, Tokyo,

Japan.

Poernomo, A., Satar, S., Effendi, P., Kusuma, A., Azimudin, T., Sudarwo, S. 2015. An

overview of Indonesia Geothermal Development – Current Status and Its Challenges.

Pp. 1 – 11. In: Proceedings of World Geothermal Congress, Melbourne, Australia, 19 –

25 April 2015.

Ryan, V. 2009. What is Geothermal Energy?.

http://www.technologystudent.com/energy1/geo1.htm. Retrieved 22nd

February 2016

Sugiyono, A. Outlook Energi Indonesia 2014. Pusat Teknologi Pengembangan Sumberdaya

Energi BPPT, Jakarta.