Geothermal Law, 2014 (Indonesia)

The Geothermal Law provides that geothermal resources are national assets controlled by the state and used for the greatest prosperity of the people. Control of geothermal activities shall be managed by the government, provincial government and district/city governments. The authority of the Government shall include national policy-making, granting of permits, guidance and supervision, data management and geological information, inventory and preparation of balance sheet of geothermal resources and reserves, exploration, exploitation and/or utilization of geothermal resources, and encouragement of research, development and engineering capabilities. The Law classifies utilization of geothermal resources under Direct Utilization and Indirect Utilization. Direct Utilization includes utilization for travel, agribusiness and industry. A Direct Utilization Permit is required for these purposes and geothermal energy prices are regulated by the government. Indirect Utilization refers to exploration, exploitation and utilization, for which activities a Business Entity Geothermal Permit is required. Geothermal energy prices for Indirect Utilization is set by the Government.