Indonesia is with 220 million people and a GDP estimated around US$800 billion in 2010 one of the largest economies in Southeast Asia. The economy has been steady growing over the past decade, mostly in the range of 5 to 6 percent per year. Although the economy in 2013 has seen a slight set back in its growth, the forecasted developments are very positive. The population growth rate along with the economic growth impacts on the countries need for infrastructure (e.g., schools, hospitals, housing, roads), resources (e.g., food, water, electricity), and jobs. This economic growth has also led to increasing demand for electricity that has averaged around 8 percent growth per year. It is envisaged that Indonesia’s energy demand is planned to grow 30-fold in 2050. PLN, the national power company, has struggled to mobilize investments to sustain the demand in energy. In 2006, the Government of Indonesia the adopted the Fast-Track Program designed to rapidly develop 10,000 MW of generation capacity utilizing the relatively inexpensive coal resources that is abundant in the country. This resource is cheap but the downside is that it is results in massive CO2 and dust emissions, which are hazardous to the people, and environment and negative contribute to climate change. Indonesia however is also committed to international agreements on greenhouse gas emission. The government launched the INISIATIF ENERGI BERSIH (More Energy, less Carbon), the Indonesian effort to limit the impact of climate change caused by greenhouse gas emissions. This initiative proposes a 9,500 MW of Geothermal electricity generation to be commissioned by 2025 that will reduce 69.5 million ton CO2 annually and over 2,085 million calculated over a 30 year. Indonesia, being located in the ring of fire, a large magmatic arc of active volcanoes, has among the world’s largest resources of geothermal energy or energy generated from natural heat produced by the Earth through volcanic processes. There are presently two main hurdles to overcome that limit the development of geothermal energy: lack of skilled and trained personnel to explore, produce and exploit the resource and the competition between exploration and protection of forest areas as most of the suitable locations for geothermal energy are located in protected forest areas. To achieve the ambition of the Government of Indonesia to increase energy production from geothermal resources to 3556 MW in 2014 and 12.332 MW and to support the 20 new geothermal working areas, geothermal companies will need earth scientists (geophysicist, geologists, geochemist) but also engineers, economists, land conservation experts and legal experts. In part, university-level personnel will be required but also a range of technician-level personnel will be needed. At present there is not enough skilled personnel to fill the existing gaps hence a nation-wide capacity building program is needed. It is difficult to assess the capacity needed both in volume as well as in level of education. The Netherlands Embassy, through Agenschap.NL started to assist BAPPENAS in 2009, to accelerate investments in geothermal areas. On 14 October 2011, the National Development Planning Agency of Indonesia (BAPPENAS) by its Directorate for Energy, Mineral Resources, and Mining issued a program for ‘proposed technical assistance’ aimed at establishing a National Geothermal Capacity Building Program (NGCBP). The Geothermal Capacity Building Program – Indonesia-Netherlands (GEOCAP) specifically refers to the Indonesian-Netherlands capacity-building program that is seen as a contribution to NGCBP.
The objective of the NGCBP program issued by BAPPENAS was to increase the capacity of Indonesia’s Ministries, Local Government Agencies, public and private companies and knowledge institutions in developing, exploring and utilization of geothermal energy sources, and to assess and monitor its impact on the economy and environment. BAPPENAS formally asked to Netherlands to support Indonesia in its quest to develop geothermal resources. A broad Indonesian-Netherlands partnership between the Consortium and relevant and interested Indonesian partners that jointly hold all required knowledge and expertise to support the request was formed. Because of the nature of its members, both in Indonesia and in the Netherlands, the partnership took the form of a Public-Private Partnership (PPP). The main goals of the BAPPENAS capacity building program to which the IND-NL PPP developed its program were:
- Support and strengthen with technical assistance the proposed Project Management Unit (in BAPPENAS) and two Project Implementation Units (one in MEMR and one in ITB/PGE, research and master’s program in geothermal).
- over a three year period, strengthen, ITB, Universitas Gadjah Mada and Universitas Indonesia to develop and teach high level specialized geothermal program for senior geothermal experts
- over a three year period, provide capacity for up to 17 Universities (see table below) with planning and assisting relevant government authorities and institutions with the development and supervision of implementation of geothermal projects (both through direct and indirect utilization of steam) including but not limited to i) social, environmental and forestry management plans, ii) geothermal business development, iii) geothermal disaster risk management.
- Train local University lecturers and staff in remote heat sensing methodologies and building on the training put together a resource map for developing Engineered Geothermal Sites.
- Train local university staff to identify, develop and appraise small and medium scale business, which will utilize geothermal energy other than electricity.
- Train university staff and staff from Badan geologi MEMR and district energy bureaus of local governments to utilize a publicly accessible geothermal database, which will also be developed by the universities under this project.
- to upscale the activities Geothermal Energy addressing the need for trained personnel (e.g., scientific staff in Universities, National and local Government staff, Management and technical staff in Companies). For each MW of installed geothermal energy, 1.7 FTE additional personnel is required. At the current ambitions of the Indonesian government, the sector should grow to around 12000 employed in 2025 and 30000 employed in 2050.
The Geothermal capacity building programme Indonesia-Netherlands (GEOCAP) is a public-private partnership (coordinated by INAGA and the University of Twente) of Indonesian and Dutch Universities (Institut Teknologi Bandung, Universitas Gadjah Mada, Universitas Indonesia, University of Twente, Delft Technical University, Utrecht University), knowledge institutes (TNO - Netherlands organisation for applied scientific research), companies (IF Technology, DNV-GL). GEOCAP reports to an advisory board chaired by BAPPENAS with INAGA forming the secretariat. Members are the Rectors of the participating Indonesian universities, the Embassy of the Kingdom of the Netherlands, Directorate General of the New and Renewable Energy (MEMR), Directorate General of Human Resources, Science, Technology and Higher Education (RISTEK-DIKTI), president of INAGA, Head of BPSDM (MEMR).
GEOCAP is funded by the Ministry of Foreign affairs of the Netherlands and received co-funding from BPSDM and in-kind funding and data from several Indonesian geothermal companies.
GEOCAP contributes to build capacity of Indonesian Ministries, Local Government, Agencies, Public and Private Companies, and Knowledge Institutions in developing, exploring and utilization of geothermal energy resources and to assess and monitor its impact on the economy and the environment. The programs aims to lay the foundations of a long-term sustainable relationship between the Netherlands and Indonesia in form of Knowledge-to-Knowledge cooperation, Business-to-Business cooperation and Government-to-Government cooperation. The present GEOCAP has a number of intimately linked components:
- A Education and Training program; focusing on developing capacity at university and technician level in support of the development of the geothermal sector
- A Research program; addressing the real needs of the sector and solving real life problems related to exploration, exploitation of geothermal resources as well as environmental and legislation issues.
- A database program; to collect, standardize, digitize, store surface and disseminate subsurface information relevant to geothermal development.
- A program focusing on the use of-low and medium enthalpy resources.
GEOCAP started in January 2014 and runs until end 2018 although several research projects will outlive the lifetime of the program and there are modest facilities in place for outreach and sustaining training activities.