Abstract: . . .  stream = $ 3 mills /kwhr WC = Well Capacity, Mw OC = OC U + OC D I E = I ES + I EW I D = I IW + I DW + I MW + I PF Notes : I PF = Production Facility Costs N DW = Number of Development Wells N MW = Number of Make Up Wells Exploration wells success ratio = 80% Development wells success ratio = 60% IRR = 15% (P/A, 15%,30) = 6.56 (P/A, 15%,10) = 5.02 Power Generation of 110 Mw will produce : Q = 80% x 110 x 10 3 kw x 24 hrs/day x 365 days / . . .
. . .  (Partowidago 1998). 3. CONCLUSION AND RECOMMENDATION It is difficult to maintain geothermal development in Indonesia without appropriate geothermal and energy policies. Government assistance, in the form of providing exploration insurance, is needed to reduce contractor risk of geothermal development in order to reduce the price of geothermal energy. The petroleum product price subsidy reduction is needed to promote energy diversification and conservation. . . .
. . .  Discount Rate, 10% r = Proven Reserves (PR) to Production (Q) Ratio In the case of Indonesia : PR = 5 x 10 9 B and Q = 0.5 x 10 9 B/year therefore r = 10 years. DP = $ (15 – 6)/B = $ 9/B = $ 3.5 /B (1+0.1) 10 2.59 Therefore the Indonesian Government should spend $ 3.5 per barrel of oil produced, or 23 percent of all oil revenue in the country, on energy development if the government wants to maintain a sustainable energy supply. 811  . . .
. . .  Injection Well Costs = 5 Wells x $ 2,250,000 = $ 11,250,000 I DW = Development Well Costs = N DW x $ 2,500,000 / Well I MW = Make Up Well Costs = N MW x $ 2,000,000 / Well I G = Power Generation Costs =$ 110,000,000 t = Geothermal Tax = 34% OC U = O & M up stream = 3% x Production & Injection Well I nvestment OC U = 3% x (110 Mw x $ 2.5 + $ 11.25) x 10 6 WC 810 Page 3 Widjajono Partowidagdo OC D = O & M down stream = $ 3 mills /kwhr WC . . .
. . .  (1+0.1) 10 2.59 Therefore the Indonesian Government should spend $ 3.5 per barrel of oil produced, or 23 percent of all oil revenue in the country, on energy development if the government wants to maintain a sustainable energy supply. 811  . . .
. . .  therefore r = 10 years. DP = $ (15 – 6)/B = $ 9/B = $ 3.5 /B (1+0.1) 10 2.59 Therefore the Indonesian Government should spend $ 3.5 per barrel of oil produced, or 23 percent of all oil revenue in the country, on energy development if the government wants to maintain a sustainable energy supply. 811  . . .
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