Yunus Saifulhak, Chief of Geothermal Power at the Energy Ministry's Directorate General, said the government has selected 26 geothermal working areas to be offered to investors. Five have already been tendered last year. The remaining 21 blocks are set to be offered in 2016-2017. The Indonesian government is currently studying which blocks are ready to be tendered first.

The five blocks that were tendered last year are Kepahiang (Bengkulu), Marana (Central Sulawesi), Way Ratai (Lampung), Mount Lawu (Central/East Java) and Lake Ranau (Lampung/South Sumatra). 

Saifulhak added that 16 blocks will be offered through an open auction, eight in 2016 and eight in 2017. For the remaining five geothermal blocks the government will select the operator (a state-owned company) through direct appointment. Most likely the government will appoint Pertamina Geothermal Energy (PGE), subsidiary of energy company Pertamina, to operate these blocks.

21 Geothermal Power Projects to Be Tendered in 2016-2017:

Block Capacity (MW) Estimated Investment
Bonjol           60   USD 240 million
Gunung Talang Bukit Kili           20   USD 80 million
Gunung Endut           40   USD 160 million
Candi Umbul Telomoyo           55   USD 220 million
Gunung Wilis           20   USD 80 million
Gunung Arjuno Welirang          110   USD 440 million
Gunung Pandan           10   USD 40 million
Gunung Dede Pangrango           55   USD 220 million
Songgonti           20   USD 80 million
Sipoholon Ria-Ria           20   USD 80 million
Simbolon Samosir          110   USD 440 million
Graho Nyabu          110   USD 440 million
Suwawa           20   USD 80 million
Sembalun           20   USD 80 million
Oka-Ile Ange           10   USD 40 million
Bora Pulu           40   USD 160 million
Gunung Hamiding           10   USD 40 million
Bonga Wayaua            5   USD 20 million
Gunung Geureudong          110   USD 440 million
Gunung Galunggung          110   USD 440 million
Gunung Ciremai          110   USD 440 million

Source: Ministry of Energy and Mineral Resources

Renewable energy is projected to account for 23 percent of Indonesia's total primary energy by 2025 (from 5 percent currently). To accomplish this target the Indonesian government has high hopes for geothermal energy development. Indonesia is estimated to contain about 40 percent of the world's geothermal reserves. However, most of these reserves remain untapped due to the lack of financial resources, the complicated investment climate (particularly when it involves natural resources), and uncompetitive power tariffs. Indonesia currently uses 1,439 MW of geothermal-derived power, less than five percent of the total potential (29,475 MW).

Energy Mix Indonesia:

   Energy Mix
 Energy Mix
Oil        50%        25%
Coal        24%        30%
Gas        20%        22%
Renewable Energy         6%        23%

Source: Ministry of Energy and Mineral Resources

These geothermal power blocks are not part of the government's recently unveiled program to provide an additional 35,000 MW of power capacity by 2019.

Further Reading:

Geothermal Energy Development in Indonesia: Analysis & Overview