VIVAnews - The domestic industry is still marred in the development of geothermal sector by the economic sector.
"Actually, the domestic industry has been capable of building the supporting infrastructure facilities in geothermal development," said PT Pertamina Geothermal Energy (PGE) Managing Director Abadi Poernomo on Monday, March 15.
However, he went on, due to low economic value, the industry is reluctant to set up the facilities.
According to him, most components today in the PGE development are supplied by foreign companies based in Japan, China and Germany.
He cited the national steel company PT Krakatau Steel which has already manufactured pipelines. But as regards the geothermal projects, the prepared pipelines are considered small-scale.
"Domestic purchase is classified special order, which is more expensive in small-scale," he said.
The uneconomic situation, according to him, will not cause production costs to go higher. "The state electricity company PLN may cancel the purchase," he said.
In the same occasion, the Director of Center for Technology Conversion and Conservation at BPPT, Arya Rezavidi, said that until 2014, the domestic reserve for geothermal development may be boosted to 70 percent.
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Translated by: Bonardo Maulana W
