However, Saifulhak said the government is yet to decide which 19 geothermal blocks (out of the total of 27 blocks) are to be offered this year. Moreover, the government is also yet to decide which blocks will be given to state-owned enterprises through direct appointment and which are to be offered to the private sector through open tenders. He added that state-owned enterprises Pertamina, Perusahaan Listrik Negara (PLN), and Geodipa Energi are expected to be involved in the exploration of several blocks.

Of these 27 geothermal blocks the government has already tendered five. Winners are state-owned Pertamina Geothermal Energi (Gunung Lawu block), and the joint venture consisting of Pertamina and the consortium Optima Nusantara Energi and Enel Green Power (Way Ratai block). Tenders for three other geothermal blocks (Marana, Gunung Talang Bukit Kili and Danau Ranau) are currently in process.

Preliminary List of Geothermal Power Blocks 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

Geothermal power has become more and more on the agenda in recent years particularly as emerging market governments have to meet rising electricity demand in their rapidly growing economies, while there has also been a growing worldwide focus on clean energy sources (hence reducing dependence on coal, crude oil and natural gas for power generation).

Indonesia is estimated to contain vast reserves of geothermal energy, a relatively environment friendly energy source derived from the earth's inner heat. Based on the latest estimates, 40 percent of the world's geothermal reserves are hidden below the Indonesian surface. Although Indonesia already is the world's third-largest geothermal energy consumer, the percentage of electricity that is generated through geothermal power remains very small. In the nation's current energy mix only 0.6 percent is derived through geothermal power. Most of the geothermal potential remain untapped due to the lack of financial resources, Indonesia's 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 its estimated total potential (29,475 MW).

Read more: Geothermal Power in Indonesia - Overview & Analysis

Renewable energy is projected to account for 23 percent of Indonesia's total primary energy by 2025 (from approx. 5 percent currently). To accomplish this target the Indonesian government has high hopes for geothermal energy development. By 2025 the Indonesian government targets to raise the portion of geothermal power in the nation's energy mix to 3.63 percent from 0.6 percent currently.

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