REPUBLIKA.CO.ID, JAKARTA -- The law on geothermal will attract more investment to the sector of renewable energy in Indonesia, the Indonesian geothermal association (API) said.

"Previously we were hampered by regulations. The new law gives us big hope in the geothermal sector," Abadi Poernomo, the API chairman said here on Wednesday.

Abadi said among the factors that caused difficulty in developing geothermal reserves in the country is the fact that nearly 50 percent of geothermal reserves are found in protected forest areas.

Mining and other commercial business operations are not allowed in protected forest ares.

"This constitutes an early step toward investment in the geothermal sector," Abadi said.

He said only 1,341 megawatts of 29,000 megawatts of potential geothermal power in reserves in the country , have been utilized.

He predicted that in 2020, investment in geothermal sector would increase the country's total geothermal power generating capacity to 2,000 MW.

He said the law would encourage investors to resume plan to build geothermal power plants in 35 locations.

Many investors stopped or delayed implementation of their projects on disagreement such as in prices.

"We hope that the law regulations would be issued as soon as possible," Abadi said.

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