Indonesian Forest Laws Welcomed by Energy Industry

3 March 2010 (Last Updated March 3rd, 2010 18:30)

A new decree in Indonesia, which will allow energy projects in protected forests for the first time, is expected to provide a boost to power firms. PT Pertamina Geothermal Energy said it can now start developing geothermal projects in the region, with the capability of producing 1,340MW

A new decree in Indonesia, which will allow energy projects in protected forests for the first time, is expected to provide a boost to power firms.

PT Pertamina Geothermal Energy said it can now start developing geothermal projects in the region, with the capability of producing 1,340MW, reports Reuters.

The Pertamina projects are part of the second phase programme by Indonesia to increase power generation by 10,000MW to meet the country's power crisis.

The programme includes power generation from coal-fired power plants in the first phase and from geothermal sources in the second phase.

The decree that also allows mining and transport projects in the preserved forests has faced opposition from green groups as the nation already has one of the fastest rates of deforestation in the world.