Press Statement of President of the Republic of Indonesia on the Opening of the 10th Indonesia International Geothermal Convention and Exhibition (IIGCE) in 2024, at Jakarta Convention Center (JCC) Senayan, Jakarta, September 18, 2024

Reporter
Regarding investors for geothermal, what are the issues that make them have to wait five to six years, Sir?

President of Indonesia (Joko Widodo)
The licensing processes in our country are still quite complicated. The Government needs to improve this—fix the system to become faster and more efficient. For example, the environmental impact assessments (AMDAL) can take one to two years, not to mention other permits. If it takes up to six years, who would want to invest?

The world is now moving towards green energy, green industries, and a green economy. We have a vast potential. For example, geothermal energy has a capacity of 24,000 megawatts, which is substantial. However, since the 1980s, we’ve only utilized 11 percent of that—meaning just 2,600 megawatts, which is very small. There are many who want to use it. What’s the issue? As the Minister of Energy and Mineral Resources mentioned, the licensing process takes too long. This is what needs to be fixed—overhauling the licensing system. Okay, I think that’s it.

Reporter
(Inaudible)

President of Indonesia (Joko Widodo)
Please ask Minister Bahlil.

Reporter
Are there any new investors for geothermal, Sir?

President of Indonesia (Joko Widodo)
There are five new investors. The existing investors are Pertamina, PLN, Ministry of Finance, and Star Energy. Then there are five additional investors. Let’s see the development in 2-3 years.

Reporter
How about the Presidential Decree on Relocation of the Capital City from Jakarta to Nusantara?

President of Indonesia (Joko Widodo )
We first have to consider the readiness. Everything must be fully ready. If it’s just about signing papers, that’s easy—just a second to sign. The readiness of the new capital itself is what matters. Once the Decree is signed, the relocation must be carried out immediately. It’s not just about the buildings; the furniture must be ready, the electricity must be ready, the human resources must be ready, and the systems must be ready. This isn’t just a simple house move, which can already be quite complicated—this is moving the capital, so everything needs to be carefully considered. The one who signs (the Decree) can be me or the president-elect, Mr. Prabowo Subianto. But what’s most important is that the city must be truly ready, and the ecosystem is already built. There are also other supporting factors to consider, like logistics, schools for the children who will live there, the hospitals—everything. If it were just about the people, then it would be easy. Just pack some clothes, and we’re set.

(EST/LW)