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Indonesia has the potential to produce more than 27GW electricity generated from geothermal or 40% of the world’s potential since the country lies on the Pacific Ring of Fires.
The country is promoting geothermal power project, issuing a series of regulations and planning to have 3,977 MW geothermal power by 2015, about three times current capacity.
New favourable regulations have been issued by the government but implementation has always been our main concern.
Pertamina and some private companies like Star Energy and Medco are all looking to add or build new capacity, rapidly.
Primary beneficiaries this geothermal potential would include those with geothermal project such as Medco (MEDC IJ) and oil and gas services companies like Elnusa (ELSA IJ) and Apexindo (APEX IJ).
Secondary beneficiaries include heavy equipment distributors, cement companies, and consumer goods.
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