EXIM BANK THROW USD 30 MILLION FUND FOR ENERGY DEVELOPMENT

Indonesia Exim Bank challenge businessplay­ers and investors to use a fund of USD 30 million for research and development of new energy, renewable energy and energy conservation [EBTKE]. The thro­wout of fund indirectly enhanced people's awareness about energy efficiency and conservation. Energy problem was loud and clear, in parallel with increasing population. Indonesia's population might reach 320 million by 2025 next, which definitely means drive up of energy consumption. Demand would grow by 60 percent but supply only by less than 10%.

"The USD 30 million fund must be benefited for a rewarding energy export but accompanied by sustainable development of new energy and renew­able energy. We as financing institution and guarantor really wish to treat all stakeholders well with financ­ing facilities" The Indonesia Senior Execution Director of Exim Bank Arifin Indra stated to Business News [9/6].

The research and development of renewable energy must be accompanied by a certain degree of obedience to rules; because many countries were campaigning environmental conservation and effort to save planet earth. The campaign was also related to climate change, protection of marine bio diversity, natural forests, natural water resource etc.

The buyers abroad saw Indonesia's contribu­tion to environmental conservation effort in obedi­ence to rules, The buyers abroad would keep buying Indonesian products, They might even make repeat order at high price. Exim Bank believes that energy development was rewarding effort. "We have USD 30 million in hand. Potential collaborations are being offered to us. We develop export of products with product guarantee and there is USD 30 million to real­ize it."

The prospect of geothermal renewable en­ergy in Indonesia was more advantageous compared to that of other countries like Japan, Hong Kong and Taiwan in the Asia Pacific area. Operational cost for earth drilling in Indonesia was only between USD 1 - USD 7 million while in Japan, the cost needed for such was above USD 10 million; the depth of earth drilling in Indonesia to obtain energy was less.

In Japan, Taiwan or Hong Kong it was the contrary. "In Japan, drilling could be as deep as 10km before touching energy, but in Indonesia 1 or 2 kilometers was enough" Chrisnawan Anditya, re­searcher of APERC disclosed to BusinessNews.

Geo thermal heat is a source of heat con­tained in mix of hot water, water steam and stones together with other linked mineral and stones which were inseparable in a source of heat and mining was needed to tap them.

Geo thermal heat originated from tectonic ac­tivities in earth ever since planet earth was created. The heat also originated from solar heat absorbed by earth surface. All countries as economic block in the Asia Pacific region including Indonesia is the Ring of Fire zone. But of 21 member countries, APERC noted there were only 11 countries developing geo thermal. "Beside Indonesia, the USA, the Philippines, Taiwan, Hong Kong, Japan and New Zealand were developing geo thermal as energy source" Chrisnawan said.

Drilling was for testing and to detect the vol­ume of energy reserves. "The difference between geo thermal and other generators was that investors must assess the energy content. For such the investment needed was high, but drilling is only once, no repeat drilling is needed. The process of drilling one hole in Japan is aided by applied technology. The tech­nology could balance the condition of earth in Japan where the temperature is low and such had never been exercised in Indonesia" he said.

Drilling technology in Japan was very natural, to think that to make assessment a depth of 10 km was needed. "Drilling process in Indonesia is faster, because the source of heat is not too deep. The tem­perature of earth crust in Indonesia is hotter than that in Japan, Hong Kong and Taiwan. Investment in go thermal in Indonesia is highly potential." Chrisnawan remarked.

For comparison, Taiwan's economic master-plan had included development of geo thermal heat. A small country with minimum natural resources, Tai­wan saw the geo thermal potential. The Government had assessed the potential of geo thermal heat. "Geo thermal energy is a treasure. All we have to do is tap. The investment is high but energy sustainability is guaranteed. With geo thermal energy, Indonesia may reduce import of oil. (SS)

Business News - June 13, 2014