Pertamina to lose monopoly on geothermal steam

Director general of electricity and energy development at the Ministry of Mines and Energy said the ministry had proposed a new regulation to revoke the monopoly held by state oil and gas company Pertamina on the country's geothermal resources, Bisnis Indonesia reported.

He said the ministry had sent the draft regulation to the State Secretary's office late last month.

The new regulation aims to replace three presidential decrees that grant Pertamina the exclusive right to develop the country's geothermal resources and oblige all foreign contractors to set up joint ventures with Pertamina to develop geothermal projects.

He said the monopoly right held by Pertamina on the country's geothermal resources had made the price of geothermal power was more expensive than those produced by other types of power plants.

He also said under the proposed regulation, geothermal contractors would receive incentives from the government, but he did not detail on the incentives. (*)