The fund of the finance ministry can be used by local governments to determine the geothermal potential in the area. When exploration shows good perspectives, local governments can put the area for bidding and investors that win should refund exploration funds to the finance ministry. Private investors can also apply for loans from the agency for geothermal exploration.

Indonesia is estimated to contain the world's largest geothermal energy reserves. Around 40 percent of total global potential in geothermal energy is located beneath Indonesian soil. Progress in its rate of production, however, is occurring at a very slow pace. Today, Indonesia uses only four to five percent of its geothermal capacity. The largest reserves of geothermal energy are located in the western part of Indonesia where energy demand is highest: Sumatra, Java and Bali.

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