CLSA Geothermal energy to ramp up in Indonesia

What’s new?
􀂉 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.