Developing geothermal energy with Iceland.
Over 15 foreign companies are said to be lining up to invest in the geothermal power industry in Indonesia, as world oil prices remain high, and Indonesian oil production declines.
Bambang Kustono of Pertamina Geothermal Energy (PGE) says the companies include Suez International Energy, Chevron, Star Energy, and others from New Zealand, Germany, the Philippines, and Iceland, and that PGE is currently evaluating their applications. 
Reykjavik Energy Invest (REI) of Iceland is at the most advanced stage. On 23rd October President Susilo Bambang Yudhoyono met with the Icelandic Energy and Industry minister Ossum Skarphedinsson to discuss development of the geothermal energy sector and to sign a Memorandum of Understanding on investment.
REI's first project is expected to begin in 2008 somewhere in eastern Indonesia and the company plans to build a 500MW geothermal power plant. Industry minister Fahmi Idris says:
It's a strategic location in the east near Australia.
Fahmi Idris said Iceland was once a very poor country but had become very rich because of its geothermal industry. Geothermal sources provide Iceland with 72% of its power needs, while in Indonesia only 3%. 
Hmm…. energy will soon be a big problem for us; it will take a lot more than just a single geothermal plant. It is quite possible that because we’re broke, we don’t have the money for large scale investment in energy. What is more, both Indonesian government and public do not seem to consider energy as an urgent issue.
The figures are actually quite scary. Our oil consumption now almost equals our own production. The wells are on the declining, but we don’t have the money to invest on finding and exploiting new sources. Soon we will become an oil importer, while the price continues to hike. It’s going to be expensive. We’re not particularly effecient when it comes to energy consumption either. We’re happy that the economy is moving again at 4-5 %, but this is also because we’re burning energy an an increasing rate of 7-15 % anually. Our energy depends a lot on oil, but I suspect the oil reserve that we have won’t last past 25 years.
With no energy, we will no means to mass produce modern things like clothings, platics, and even Indomie. This in itself is perhaps not a problem yet. People can survive just with the basics; but we will need food. And because Java is over populated, they will suffer the most.
It would be a good idea now to bring down population growth to negative… What’s the point of bringing children to the world if we can’t feed them?
About time indonesia utilise geothermal, plus hydro electricity. Plenty of potential for hydro in kalimantan and sumatra. Connect submarine line (can JV with Sarawak state in Malaysia as they are building a 2000MW hydro capacity in Bakun with no potential usage) and indonesia can supply the rest of ASEAN with non-polluting electricity. Same with geothermal. We can then close down all coal/gas power plant.
In Bali there are also plans to build a geothermal energy plant in the Bedugul area, but there is a lot of opposition against it as it uses a lot of surface water. The island has already a serious water problem as the water level of the lakes, espacially lake Buyan, is alarmlingly declining. This, together with the huge amounts of water needed for hotel swimming pools and golf courses, frequently causes interruptions in drinking water supply, not to mention the problems for ricefield irrigation.
I like the idea of geothermal energy in indonesia. Unlike hydo power which tends to flood large areas of arable land or coal power which tends to pump sulfur into the air the only byproduct of geothermal is hot water. Maybe it won’t solve all of indonesias requirements but it certainly wont hurt either.
geathermal in indonesia can take work if they focus on building mini plants to accomodate surrounding populated areas. In other words, forget building mega geothermal plants, concentrate on building plants that indonesian can design and build at low cost, subcontracting the mojority of the development and construction to indonesian only contractors. This way, money for plant building will stay within the country. Initially the plant will lose out in term of ultimate efficiency, but in the long run, as experience is gained, that loss of efficiency will be minimised, and manufacturing and engineering will benefit.
I think that energy that we discover should be kept under raps and CLASSIFIED, EXCEPT from the realy poor foreign compainies so they have power so the kids are not suffer from the nuclear power plants so that they are noy getting more sick then what they already are.
Old blog, but wanted to update it with current stimulus on these systems. As of Jan of 2009 solar, geothermal, or any renewable is now a 30% kick back with no cap. The previous cap use to be $2000