" "EVERYTHINGTHAT CAN REDUCE CARBONEMISSIONS MUSTBE BROUGHT INTO PLAYoday, nations are striving to liberatethemselves from overdependence onfossil fuels. It, therefore, makes a perfectsense to tap sources of energy that do notadd further to the problem of rising carbon emissionsand overheating of the planet.There is no longer any doubt that, we are alreadybeginning to feel the impacts of the reality of climatechange. Failure on the part of the internationalcommunity to mitigate and to adapt to climate change,will lead to terrible devastation. It could, for instance,cause the sea level to rise and make small islands andlarge areas of coastal land disappear under water. Itcould lead to changes in weather patterns, that couldinflict so much human suffering, and severe damage tothe world's food productivity. And all of this because the level of carbon emissionsinto the atmosphere, since the start of the industrialrevolution in the 19th century, has risen to dangerouslevels. All of us know that to a very large extent, this isdue to the increasingly intensive burning of fossil-based fuels to support human economic activity, andreckless consumption. And to many countries, including Indonesia, a largepart of the solution to that problem is a successfultapping of vast resources of geothermal energy. Andindeed, if we find the ways and means of tapping thesegeothermal energy resources and make full use ofthem, there would be substantially less carbonemissions in the atmosphere of our planet. After the United States with close to 4,000 MW andPhilippines utilising approximately 2,000 MW,Indonesia is currently only using 1,100 MW ofgeothermal energy. This is only some 4.2 per cent ofour geothermal reserves, which constitute about 40per cent of the world's geothermal potential. This is going to change. It is my intention for Indonesiato become the largest user of geothermal energy. Weurgently need to accelerate geothermal development inour country. But this is a task that the Governmentalone cannot carry out. We need the help of allstakeholders. This is where I would like to express ourthanks and appreciation to our development partners,JICA, Germany, France, the Netherlands, The ADB and the World Bank, who all have offered technicalassistance and low interest loans for this purpose. We already have in place a set of long term policies forthe development of geothermal energy, as embodied inthe Geothermal Development Roadmap of 2004-2025. We do envision that by 2025, about five percent of our national energy needs will be met throughthe use of geothermal energy. We have taken several important steps toward thatgoal. These include the four projects covered by theSteam Purchase Agreement between PT PLN and PTPertamina Geothermal Energy, the establishment offinancing arrangements with the World Bank for thetapping of geothermal energy, and the delegation ofauthority over significant geothermal energy reserves,to the provincial governments of Central Java, SouthSumatera and West Lampung. These activities, involving a total investment ofUS$8.6 billion, will eventually produce some 2,885MW of power. That will help close the 4,500 MWenergy gap that Indonesia is now contending with, as aresult of its rapid economic development. The reduction in emissions from the pursuit of theseGEOTHERMAL RESOURCES: A PART OF THE CLIMATE SOLUTION104G-20 MEMBERSDR SUSILO BAMBANG YUDHOYONO, PRESIDENT, REPUBLIC OF INDONESIATPhoto: UN Photo/Paulo Filgueiras
G-20 MEMBERS105Below: Dr SusiloBambang Yudhoyonoprojects, will total some 17.3 million tonnes of carbondioxide every year - a considerable contribution toclimate stability. To develop the know-how andexpertise required to accelerate the exploitation of thisresource, we will also invest in a network of geothermalcentre of excellence. This network of centre of excellence, which will bringtogether Indonesia and world experts, can be the base-camp of a world wide effort, to enhance the use of this renewable and sustainable source of energyaround the world.I would like you to see it as a world geothermallaboratory, where new techniques and newtechnologies can be tested. Our acceleratedinvestment programme will be developed forapproximately 50 per cent by our state-ownedcompanies. For the other 50 per cent, we will invite the private sector to take part. Already we have seen the contributions from Chevron, Star Energy and Medco, and we hope to see more experiencedinternational companies take up this challenge.I know that, there are still a number of obstaclesstanding in the way of attracting strong local andinternational firms to invest. I have taken measures toremove these obstacles. The first one, the possibleoverlapping use of geothermal in pristine forest areas has already been resolved, and the first licensesfor development in Kamojang and Lumut Balai havebeen released.I truly hope that Indonesia will lead the world indeveloping geothermal energy. Our network of centre ofexcellence will support that development. But will alsobe open to cooperation with ASEAN, Africa and LatinAmerican countries to develop this resource. I am confident that drilling operations for geothermalenergy in any part of Indonesia will have very minimal impact, if any, on the environment. We have the technology and the skilled manpower for that purpose. It is my strong hope that the efforts to tap the potentialof geothermal energy will be successful, not only inIndonesia but also everywhere else in the world, wheregeothermal energy reserves are still to be madeserviceable. I hope that the International Geothermal Associationwill give new momentum to such a global effort, byhelping to mobilise the enormous investment that isdesperately needed. This effort, of course, is part of a larger package ofmitigation and adaptation measures, that arenecessary to successfully manage the reality of climatechange. Everything that can reduce carbon emissionsmust be brought into play. Indonesia will strive to reduce its carbon emissionsthrough such measures as resorting to clean andenvironmentally friendly sources of energy, includinggeothermal, and an increase in energy efficiency. We will also strive at sustainable management of ourforests, as well as our coastal and oceans resource -especially our coral reefs. Through such endeavours,we expect to reduce our carbon emissions by 26 per cent by 2020. With sufficient internationalassistance, we can raise that target to 41 per cent. Iam confident that we can reach this goal, while alsoensuring sustainable and equitable economic growthfor our people. nThis is an edited version of the opening speech by H.E.Dr Susilo Bambang Yudhoyono, the President of theRepublic of Indonesia, at the World GeothermalCongress 2010 in Bali. Further information may befound at www.presidenri.go.id.