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Ir. Nazarudin Kiemas , MM DPR RI Chairman of Special Committee for Geothermal Law

BREAKTHROUGH IN GEOTHERMAL LAW TO ADVANCE GEOTHERMAL DEVELOPMENT Within S ustainable D evelopment in geothermal activities Presentation Paper on Indonesia International GEOTHERMAL CONVENTION & EXHIBITION at Jakarta Convention Center, June 4-6, 2014. Ir. Nazarudin Kiemas , MM

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Ir. Nazarudin Kiemas , MM DPR RI Chairman of Special Committee for Geothermal Law

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  1. BREAKTHROUGH IN GEOTHERMAL LAW TO ADVANCE GEOTHERMAL DEVELOPMENTWithin Sustainable Developmentin geothermal activitiesPresentation Paper on Indonesia International GEOTHERMAL CONVENTION & EXHIBITION at Jakarta Convention Center, June 4-6, 2014 Ir. NazarudinKiemas, MM DPR RI Chairman of Special Committee for Geothermal Law (KETUA PANSUS RUU PANAS BUMI) Member of Indonesian Democracy Party for Struggle Faction (Fraksi PDI Perjuangan DPR RI)

  2. A dilemma in searchingsustainable geothermal law • Geothermal resources in the forestry conservation is our humanity common heritage. • It is unalienable and nonderogable by state law, but natural imperative to preserve for future generation having sustainability due to the unknown impact of any potential natural disaster. • Geothermal activities (mining) is preferred excluded from the Law for Mineral and Coal (Law no. 4 of 2009) in despite of technocratic imperativefor exploration and exploitation activities in the geothermal field. • Independent Government Body is an ideal public institution to implement this Geothermal Law having the authority on behalf of the state power to govern the whole related duties and responsibilities in inter-sectoral cross-cutting sphere of aspects (more than one ministerial office).

  3. what formulation within ideal geothermal law? • State budget(APBN) should be allocated for this independent body spending operational costs, but also having the authority to collect financial contribution (PNBP) from the stakeholders of geothermal projects by the authority of this law. • Liability and accountability for this independent body is directly to the people of the state through the Parliament office, but administratively to the President of Republic Indonesia. • Government License for any geothermal activity should be synchronized and harmonized to the Law of Environment Protection and Management (the Law no. 32 of 2009) which is governed by this independent body for any environment and social impact (AMDAL, AMSIL) and unit processing of waste (UKL/UPL). • Geothermal electric energy selling prices should consider the consumers power purchase by the endorsement of National Parliament.

  4. Public selection of geothermal independent body & investment loans • Benchmarking selection is Financial Services Authority (OJK: Otoritas Jasa Keuangan) in the Law no. 21 of 2001 (article 11, 34-37), with public selection to decide the members of this Gov Body, comprising of the elements from government, geothermal business association, experts, and the stakeholders from the society. • This Independent Gov Body has authority to perform investment loans (PIP) in financing the preliminary survey and exploration activities, with the return will be charged to the winning bidder of geothermal working area (pemenang tender WKG).

  5. For the sake of Sustainable geothermal law • Provisions with harmonization and synchronization for any stipulation within this Geothermal Law should meet with the Law no. 26 of 2007 regarding Spatial Planning (Penataan Ruang) also the Law no. 32 of 2009 (PPLH). • Independent Geothermal Body decision for any geothermal activities area should meet particularly the pattern of distribution space (Pola Ruang) in performing allocation of space within a region that includes the allocation of space for the function of protection and allocation of space to function cultivation (peruntukan ruang dan fungsi budidaya). --- Refer to Art. 5-6 Geothermal Draft Law (RUU) into Art. 1.4. jo. Art. 8 Law no. 26 of 2007 Spatial Planning.

  6. Geothermal activitieswith Good Mining Practicesin sustainable ideal geothermal law Feasibility integral Geothermal Practice Activities in our ideal Geothermal Law, covering aspects integrated in: • Mining and Natural Resources Technocracy • Economic Business Management • Environment, Ecosystem, and Spatial Planning • Legal Policy and Government Administration. • Working in the corridors of legislative normative framework; • Inventory resources reserve the rights for the next generation; • Principles of occupational safety health and the environment; • Integrated and appropriate technology, efficient and effective principles; • Dedicated to the principle of conservation; • Good and proper interaction with any stakeholders; • Dedicated with the principle of value-added, including to any stakeholders; • Spatial Planning as the basic references; • Every mining corporate's commitment is for good mining practices; • Supporting the commitment of any stakeholders.

  7. Benchmarking reference Sustainable geothermal law The New Zealand Energy Strategy 2011-2016: • Geothermal resources is renewable, lower carbon, source of direct heat for industry and homes, and reliable base load electricity. • To set the strategic direction for the energy sector and the role energy will play in the New Zealand economy… for New Zealand to make the most of its abundant energy potential for the benefit of all New Zealanders. • Natural resources management controls the prospecting for and extraction of geothermal fluid and energy, with health, safety and inspection of wells. • Diverse Resource Development, Environmental Responsibility, and Secure Affordable Energy.

  8. Benchmarking reference Sustainable geothermal law Reference from Australia: the Ecologically Sustainable Development Working Group on Mining (Natural Resources Activities) has defined sustainable development for the mining sector (in cassu Geothermal Activities) as: "...ensuring that the mineral raw materials needs of society are met, without compromising the ability either of future societies to meet their needs, or of the natural environment to sustain indefinitely the quality of environmental services (such as climate systems), biological diversity and ecological integrity".

  9. Benchmarking referenceSustainable geothermal law Reference from Canada: Natural Resources Canada (NRCan) has defined sustainable development for the mining sector (in cassu Geothermal Activities) as: "...finding, extracting, producing, adding-value to, using, re-using, recycling and, when necessary, disposing of mineral and metal products in the most efficient, competitive and environmentally responsible manner possible. NRCanrecognises that these activities must be carried out in consultation with, and respecting the needs and values of, other resource users and maintaining or improving environmental quality for present and future generations."

  10. THANK YOU Ir. NazarudinKiemas, MM DPR RI Chairman of Special Committee for Geothermal Law (KETUA PANSUS RUU PANAS BUMI)

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