Japan invests in Indonesia’s geothermal energy project

Jakarta - Japanese oil and gas driller Inpex has announced that it invested in a geothermal energy project in Indonesia and will study the potential to develop a power plant in the Southeast Asian nation.

Inpex acquired a 31.45% stake in Supreme Energy Rajabasa for an undisclosed price from an affiliate of Engie energy group of France, with the rest owned by a local company and Japan's Sumitomo Corp.

Renewable geothermal energy is an investment priority for Indonesia, which is estimated to have the world's second-largest amount of geothermal resources, after the US in the context that its government pursues its goal of net-zero greenhouse gas emissions by 2060.

The project, located in the southeast of Indonesia's Sumatra island, has conducted its own geological surveys. Inpex will contribute its drilling technology to drill test wells starting this year, in order to investigate the extent of underground geothermal resources.

The company opened an office in Jakarta in October last year for its geothermal business.

Indonesia aims to raise 170 trillion rupiah (10.92 billion USD) in the capital market in 2023, including from initial public offerings and debt instruments, well below the amount raised in 2022, the country's financial regulator said on January 2.

Indonesia’s President Joko Widodo has signed a regulation that details new safety and security requirements for businesses seeking to mine nuclear materials in the country, The Jakarta Post reported.