SWOT analysis on geothermal energy development in Indonesia and fiscal incentives needed

Author(s): Abdul Aziz
Fiscal Policy Agency, the Noto Hamiprojo Building, 2nd Floor, 1 DR Wahidin Raya Street,
Central Jakarta, Jakarta, Indonesia
International Journal of Smart Grid and Clean Energy, vol. 10, no. 3, July 2021: pp. 234-243
ISSN: 2315-4462 (Print)
ISSN: 2373-3594 (Online)
Digital Object Identifier: 10.12720/sgce.10.3.234-243

Abstract: Until 2020, Indonesia's dependence on fossil energy in meeting energy needs is still high at 90,75%, while the use of new renewable energy has only reached 9,15%. Specifically, the installed capacity (which has only been utilized for electricity generation) geothermal is only 1,924.5 MW or around 6.51% of the total potential reaching 29,543.5 MW (40 percent of the world's geothermal potential).
Some of the problems that have arisen in relation to geothermal development are the high usage of fossil energy for electricity generation in Indonesia, and the strength and weakness of geothermal energy that has not been identified more adequately. there are still many problems, obstacles, and challenges in the development and utilization of geothermal energy in Indonesia, and the need for support from various parties (especially from the Government of Indonesia) to encourage the usage of geothermal energy in Indonesia due to the still high costs incurred for geothermal drilling and exploration.
This study uses a SWOT analysis method to map the real conditions related to geothermal energy development with recommendations that the Government could provide fiscal incentives both from the State Revenue, State Expenditure, and State Financing in the State Budget.

Keywords: Geothermal development, SWOT analysis, fiscal incentives
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