Ichsan Ali, Jakarta – President Joko "Jokowi" Widodo criticized the lengthy and complex permit process for geothermal power projects in Indonesia, warning that such delays are hindering the development of the country's vast geothermal resources.
Speaking at the Indonesia International Geothermal Convention and Exhibition (IIGCE) 2024, Jokowi urged immediate reforms to expedite the approval process and boost investment in renewable energy.
Jokowi highlighted that approval times can extend up to 5-6 years before construction begins, creating a barrier to harnessing Indonesia's geothermal potential, which constitutes about 40 percent of the world's reserves.
"Imagine waiting up to 6 years just to start construction. Investors are unlikely to commit to such long delays. Even though people say I should be patient, I find it hard to wait that long," Jokowi said during his speech on Wednesday.
He noted that only 11 percent of Indonesia's geothermal potential, estimated at 24,000 megawatts (MW), has been developed. Despite this, Indonesia remains committed to playing a significant role in the global green economy and transitioning to renewable energy.
Jokowi also acknowledged the challenges faced by developing countries, including issues of affordability, equitable access, and limited technology utilization.
"I understand that businesses have their own calculations and considerations regarding turnover, profits, and other factors," Jokowi added.
Energy and Mineral Resources Minister Bahlil Lahadalia announced plans to streamline requirements to enhance investment in Indonesia's new and renewable energy sector. He pointed out that current lengthy approval processes delay the transition from fossil fuels to renewable energy.
"We will simplify requirements and reduce processing times to accelerate investments," Bahlil stated. He also warned that cumbersome regulations could impede Indonesia's goal of achieving net-zero carbon emissions by 2060.
Bahlil emphasized Indonesia's significant renewable energy potential and urged investors to move forward. "I have reported this to President Jokowi and President-elect Prabowo. We will implement reforms to speed up the process," he concluded.