WGC Bali Oppening

 A Speech by the President of Indonesia World Geothermal Congress Bali 26 April 2010

Bismillahirrahmanir rahim, Assalamu’a/aikum Warahmatullahi Wabarakatuh, Peace be upon us, Oom Swastiastu,
Your Excellency Mr. Olafur Ragnar Grimsson, President of the Republic of Iceland,
Excellency Mr. Prof. Dr. Ladislaus Rybach
Excellencies Ministers,
Excellencies Ambassadors,
Distinguished Members of the International Geothermal Association,
Ladies and Gentlemen,

Let me begin by extending, on behalf of the Government and people of Indonesia, a very warm welcome to all participants of the World Geothermal Congress to this beautiful island of Bali—where tradition combines with nature to make a tropical paradise. I am grateful that we are able to hold this Congress  I am particularly honored that His Excellency President Grimsson is able to join this Conference—in spite of all the  flight problems in Northern Europe, caused by the eruption of an Icelandic volcano with a long name that The world has been affected by that volcanic ash. But there may be a silver lining to all the dark clouds of volcanic ash : if we take the lessons of this disaster to heart, if we heed its wake-up call, the air transportation industry may become better prepared, for any major disruption in the future whatever may be its cause.

Volcanic activity is often said to cause cooler global temperature, but even so, it contributes only to three percent of carbon dioxide in the atmosphere  The rest is the result of human activity—much of it in the form of unsustainable consumption and exploitation of natural resources. And besides, without volcanoes, the earth would not have the life-sustaining atmosphere, that makes it different from so many dead planets all over the universe. It is also a scientific fact that wherever volcanoes abound, there is always a great deal of geothermal energy. For volcanic activity is simply a form of geothermal energy in action. It is only natural that Iceland, which has a wealth of experience in geothermal energy development, and Indonesia, which holds 40 percent of the world’s geothermal energy reserves, are both abound with volcanoes. Iceland has the know-how, the technology, and the experience in the use of geothermal energy for sustainable development, while Indonesia has a vast untapped supply. It is therefore only logical, that both countries should be deeply involved in this World Geothermal Congress   of   the    International    Geothermal Association. To my mind, the success of this Congress crucial to the fate of humankind. There is no longer any doubt that, we are already beginning to feel the impacts of the reality of climate change  Failure on the part of the international community to mitigate and to adapt to climate change, will lead to terrible devastation. It could, for instance, cause the sea level t rise and make small islands and large areas coastal land disappear under water    It could lead to changes in weather patterns, that could inflict so much human suffering, and severe damage to the world’s food productivity. And all of this because, the level of carbon emissions into the atmosphere since the start of the industrial revolution in the 19tn century, has risen to dangerous levels.  All of us know, of course, that to a very large extent, this is due to the increasingly intensive burning  of fossil-based  fuels to  support  hum economic activity, and reckless consumption. Today,    nations    are    striving    to    lib themselves from overdependence on fossil That makes a lot of sense. It therefore makes sense, that we should now make a sustained effort to tap sources of energy, that do not further add to the problem of carbon emissions And to many countries, including Indonesia, a large part of the solution to that problem is, the   successful   tapping   of   vast   resources geothermal energy. And indeed, if we find the ways and means of tapping these geothermal energy resources make full use of them, there would be sub less carbon emissions, in the atmosphere of our planet. That would significantly help to mitigate the impacts of climate change  And it would fulfill the vision expressed in the theme of this Congress: „Geothermal: The Energy to Change the World „. Indonesia therefore has so much at stake in this Congress. After the United States with close to      00 WW and Philippines utilizing approximately WtW, Indonesia is currently only using 1,100 MW This is only some 4.2 % of our geothermal reserves, which constitutes about 40 % of the won geothermal potential. This is going to change    It is my intention that Indonesia   will   become   the   largest   user Geothermal energy. We urgently need to accelerate geothermal development in our country  But this is a task that the Government alone cannot carry out We need the help of all stakeholders.This is why would like to express our thanks and appreciation to our development partners, JICA, Germany, France. Netherlands, The ADB and the World Bank, which have offered technical assistance and low inter loans for this purpose. We already have in place a set of long ten policies for the development of geothermal energy, as  embodied  in  the  Geothermal  Develop Roadmap of 2004-2025.

We do envision that by 2025, about five percent of our national energy needs, will be met through the use of geothermal energy. We have taken several important steps toward that goal. These include the four projects covered Steam Purchase Agreement between PT P:. PT     Pertamina     Geothermal     Energy/ establishment of financing arrangements wr World Bank for the tapping of geothermal energy and the delegation of authority over significant geothermal   energy   reserves,   to   the   provincial governments of Central Java, South Sumater West Lampung. These activities, involving a total investment of US$ 8.6 billion, will eventually produce some 2,885 MW of power  That will help close the 4,500 MW energy gap that Indonesia is now contending with, as a result of its rapid economic development. The reduction in emissions from the put these projects, will total some 17.3 million carbon   dioxide   every   year   –   a   cor contribution to climate stability. To   develop   the   know-how   and required  to  accelerate  the  exploitation resource, we will also invest in a network of geothermal centre of excellence. This network of centre of excellence, which will bring together Indonesia and world experts, cart be the base-camp of a world wide effort, to the use of this renewable and sustainable energy around the world. I would like you to see it as a world geothermal laboratory,    where    new   techniques technologies can be tested. Our accelerated investment program will be developed for approximately 50% by our State Own Companies  For the other 50%, 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 experienced inter­national companies take up this challenge. Under  the   Geothermal   Law  2 governments   have   become  the   ovv geothermal resources in their constituent have the responsibility in  association. Ministry of Energy, to develop the field, and to monitor their exploitation. I am aware, that they currently lack the expertise to aggressively move forward  But last week and again this week, I will be instructing my ministries to make it a priority, to facilitate the investments by the local governments in exploiting this resource  I am pleased, that the International Finance Corporation has started to as one on the    regions,    with    tendering    so their geothermal working areas. I know that, there are still a number of obstacles standing in the way of attracting strong local and international firms to invest  I have taken measures to remove these obstacles  The first one, the possible overlapping use of Geothermal in pristine forest areas has already been resolved, and the first licenses for development in Kamojang and Lumut Balai have been released last month. I truly hope, that Indonesia will lead the world In developing Geothermal Energy  Our network of centre of excellence will support the development  But will also be open to cooper the ASEAN Africa and Latin American countries to develop this resource. I am confident that drilling operations for geothermal energy 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 potential of geothermal energy will be successful, not only in Indonesia but also everywhere else in the world, where geothermal energy reserves are still to be made serviceable. I hope that the International Geo- thermal Association will give new momentum to such a global effort, by helping to mobilize the enormous investment that is desperately needed. This effort, of course, is part of a larger package of mitigation and adaptation measures, that are necessary to successfully manage the reality of climate change  Everything that can reduce carbon emissions must be brought into play. Indonesia will strive to reduce its carbon emissions through such measures, as resorting to clean and environmentally sources of energy, including geothermal, and an increase in energy efficiency. We will also strive at sustainable management of our forests, as well as our coastal and oceans resources—especially our coral reefs. Through such endeavours, we expect to reduce our carbon emissions by 26 percent by 2020  With sufficient international assistance, we can raise that target to 41 percent  I am confident that we can reach this goal, while also ensuring sustainable and equitable economic growth for our people. This, I know, is also the hope of many developing nations, that are striving to achieve socioeconomic development, while also contributing to climate stability Through such endeavours, we expect to reduce our carbon emissions by 26 percent by 2020  With sufficient international assistance, we can raise that target to 41 percent  I am confident that we can reach this goal, while also ensuring sustainable and equitable economic growth for our people. This, I know, is also the hope of many developing nations, that are striving to achieve socioeconomic development, while also contributing to climate stability What is at stake in this Congress and in your work is, a world that is changed for the better through the use of a cleaner, safer and more environment-friendly source of energy. I therefore wish you every success in all your endeavours With that sentiment and by the grace of God, Bismillahirrahmanir rahim, I declare the 2010 World Geothermal Congress officially open.

Thank you
Wassalaamu’alaikum warahmatullahi wabarakatuh
Oom Shanti, Shanti, Shanti Ootn

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