Jakarta (Indonesia Window) – The Asian Development Bank (ADB) provides loan to Indonesia for the developments of geothermal power plants in Dieng, Wonosobo district (Central Java) and Patuha in Bandung district (West Java).
In a statement from the Indonesian Ministry of Energy and Mineral Resources received by Indonesia Window here on Wednesday, ADB’s Director for Indonesia Winfried F. Wicklein said the two geothermal projects would help Indonesia tackle climate change and make the national electricity system sustainable, reliable, and efficient.
The ADB and an Indonesian company, PT Geo Dipa Energi, virtually signed a document for a loan agreement on Wednesday.
On the same occasion, Geo Dipa Energi and PT Penjamin Infrastruktur Indonesia (PII), or Indonesia Infrastructure Guarantee Fund (IIGF), signed a document on the developments of Dieng 2 and Patuha 2 power plants for guarantee, while Geo Dipa Energi and the Directorate of Risk and Management of the Ministry of Finance signed document on guarantee agreement.
“Our assistance is in line with Indonesia’s long-term goals to achieve economic and energy growth, including maximizing the use of domestic energy resources, increasing the energy mix, and ensuring environmental sustainability,” Winfried said.
The development project is also expected to boost Indonesia’s business sector, as well as open access to affordable, reliable and modern energy for people.
The development of the Dieng and Patuha power plants is Indonesia’s first geothermal project with the Asian Development Bank (ADB) under a direct lending scheme.
Meanwhile, President Director of PT Geo Dipa Energi Riki Firmandha Ibrahim said the use of renewable energy needs to be increased not only to achieve the national renewable energy mix target of 23 percent by 2025, but also realize low carbon economy.
“Using geothermal energy will make the environment better as the operation of geothermal plants produces almost no carbon emissions that damage the Earth,” he said.
According to Riki, the construction of the renewable energy-based power plants supports the government’s commitment to reduce carbon emissions in accordance with the climate change framework in the Paris Agreement on the United Nations Framework Convention on Climate Change (UNFCCC-COP 25).
The development of the two power plants, which is expected to start in late 2020 and is scheduled to operate in 2023, will increase their capacity by 110 megawatts (2×55 MW).
Reporting by Indonesia Window