The Opening Speech
byThe President of the Republic of Indonesia
Dr. Susilo Bambang Yudhoyono
at theWorld Geothermal Congress 2010
Bali, Indonesia, 26 April 2010
Bismillahirrahmanir rahim,
Assalamu'alaikum Warahmatullahi Wabarakatuh,
Peace be upon us,
Oom Swastiastu,
Your Excellency Mr. Olafur Ragnar Grimsson, President of the Republic of Iceland,
Excellency Mr. Prof. Dr. Ladislaus Rybach
Excellencies Ministers,
Excellencies Ambassadors,Distinguished Members of the International Geothermal Association,
Ladies and Gentlemen,
Let me begin by extending, on behalf of the Government and people of Indonesia, avery warm welcome to all participants of the World Geothermal Congress to thisbeautiful island of Bali - where tradition combines with nature to make a tropicalparadise.
I am grateful that we are able to hold this Congress. I am particularly honored that His
Excellency President Grimsson is able to join this Conference - in spite of all the flightproblems in Northern Europe, caused by the eruption of an Icelandic volcano with along name.
The world has been affected by that volcanic ash. But there may be a silver lining to all
the dark clouds of volcanic ash: if we take the lessons of this disaster to heart, if weheed its wake-up call, the air transportation industry may become better prepared, forany major disruption in the future whatever may be its cause.
Volcanic activity is often said to cause cooler global temperature, but even so, it
contributes only to three percent of carbon dioxide in the atmosphere. The rest is theresult of human activity - much of it in the form of unsustainable consumption andexploitation of natural resources.
And besides, without volcanoes, the earth would not have the life-sustaining atmosphere,that makes it different from so many dead planets all over the universe.
It is also a scientific fact that wherever volcanoes abound, there is always a great deal ofgeothermal energy.

1For volcanic activity is simply a form of geothermal energy in action.
It is only natural that Iceland, which has a wealth of experience in geothermal energy
development, and Indonesia, which holds 40 percent of the world's geothermal energy
reserves, are both abound with volcanoes.
Iceland has the know-how, the technology, and the experience in the use of geothermalenergy for sustainable development, while Indonesia has a vast untapped supply.
It is therefore only logical, that both countries should be deeply involved in this World
Geothermal Congress of the International Geothermal Association.
To my mind, the success of this Congress is crucial to the fate of humankind.
There is no longer any doubt that, we are already beginning to feel the impacts of thereality of climate change. Failure on the part of the international community to mitigate
and to adapt to climate change, will lead to terrible devastation.
It could, for instance, cause the sea level to rise and make small islands and large areasof coastal land disappear under water. It could lead to changes in weather patterns, that
could inflict so much human suffering, and severe damage to the world's foodproductivity.
And all of this because, the level of carbon emissions into the atmosphere since the startof the industrial revolution in the 19th century, has risen to dangerous levels.
All of us know, of course, that to a very large extent, this is due to the increasingly
intensive burning of fossil-based fuels to support human economic activity, and recklessconsumption.
Today, nations are striving to liberate themselves from overdependence on fossil fuels.
That makes a lot of sense. It therefore also makes sense, that we should now make asustained effort to tap sources of energy, that do not further add to the problem ofcarbon emissions.
And to many countries, including Indonesia, a large part of the solution to that problem
is, the successful tapping of vast resources of geothermal energy.
And indeed, if we find the ways and means of tapping these geothermal energy
resources and make full use of them, there would be substantially less carbon emissions,in the atmosphere of our planet.
That would significantly help to mitigate the impacts of climate change. And it would
fulfill the vision expressed in the theme of this Congress: “Geothermal: The Energy toChange the World"
Indonesia therefore has so much at stake in this Congress.

2

After the United States with close to 4,000 MW and Philippines utilizing approximately
2,000 MW, Indonesia is currently only using 1,100 MW. This is only some 4.2 % of ourgeothermal reserves, which constitutes about 40 % of the world's geothermal potential.
This is going to change. It is my intention that Indonesia will become the largest user ofGeothermal energy.
We urgently need to accelerate geothermal development in our country. But this is atask that the Government alone cannot carry out. We need the help of all stakeholders. 	 
This is where I would like to express our thanks and appreciation to our development
partners, JICA, Germany, France, the Netherlands, The ADB and the World Bank, who
all have offered technical assistance and low interest loans for this purpose.
We already have in place a set of long term policies for the development of geothermalenergy, as embodied in the Geothermal Development Roadmap of 2004-2025. We doenvision that by 2025, about five percent of our national energy needs, will be met
through the use of geothermal energy.
We have taken several important steps toward that goal.
These include the four projects covered by the Steam Purchase Agreement between PT
PLN and PT Pertamina Geothermal Energy, the establishment of financing
arrangements with the World Bank for the tapping of geothermal energy, and thedelegation of authority over significant geothermal energy reserves, to the provincial
governments of Central Java, South Sumatera and West Lampung.
These activities, involving a total investment of US$ 8.6 billion, will eventually produce
some 2,885 MW of power. That will help close the 4,500 MW energy gap thatIndonesia is now contending with, as a result of its rapid economic development.
The reduction in emissions from the pursuit of these projects, will total some 17.3
million tons of carbon dioxide every year - a considerable contribution to climatestability.
To develop the know-how and expertise required to accelerate the exploitation of thisresource, we will also invest in a network of geothermal centre of excellence.
This network of centre of excellence, which will bring together Indonesia and world
experts, can be the base-camp of a world wide effort, to enhance the use of thisrenewable and sustainable source of energy around the world.
I would like you to see it as a world geothermal laboratory, where new techniques andnew technologies can be tested.
Our accelerated investment program will be developed for approximately 50% by ourState Own Companies. For the other 50%, we will invite the private sector to take part. 	 
Already we have seen the contributions from Chevron, Star Energy and Medco, and we3

hope to see more experienced international companies take up this challenge.
Under the Geothermal Law 27/2003, local governments have become the owners of thegeothermal resources in their constituency. They have the responsibility in association
with the Ministry of Energy, to develop the field, and to monitor their exploitation.
I am aware, that they currently lack the expertise to aggressively move forward. But lastweek and again this week, I will be instructing my ministries to make it a priority, tofacilitate the investments by the local governments in exploiting this resource. I am
pleased, that the International Finance Corporation has started to assist one on theregions, with tendering some of their geothermal working areas.
I know that, there are still a number of obstacles standing in the way of attracting strong
local and international firms to invest. I have taken measures to remove these obstacles.
The first one, the possible overlapping use of Geothermal in pristine forest areas has
already been resolved, and the first licenses for development in Kamojang and Lumut
Balai have been released last month.
I truly hope, that Indonesia will lead the world in developing Geothermal Energy. 	 
Our network of centre of excellence will support that development. But will also be
open to cooperation with ASEAN, Africa and Latin American countries to develop thisresource.
I am confident that drilling operations for geothermal energy in any part of Indonesia
will have very minimal impact, if any, on the environment. We have the technology andthe skilled manpower for that purpose.
It is my strong hope that the efforts to tap the potential of geothermal energy will besuccessful, not only in Indonesia but also everywhere else in the world, wheregeothermal energy reserves are still to be made serviceable.
I hope that the International Geothermal Association will give new momentum to such a
global effort, by helping to mobilize the enormous investment that is desperatelyneeded.
This effort, of course, is part of a larger package of mitigation and adaptation measures,that are necessary to successfully manage the reality of climate change. Everything thatcan reduce carbon emissions must be brought into play.
Indonesia will strive to reduce its carbon emissions through such measures, as resorting
to clean and environmentally sources of energy, including geothermal, and an increasein energy efficiency.
We will also strive at sustainable management of our forests, as well as our coastal andoceans resources - especially our coral reefs.
Through such endeavours, we expect to reduce our carbon emissions by 26 percent by
2020. With sufficient international assistance, we can raise that target to 41 percent. I4

am confident that we can reach this goal, while also ensuring sustainable and equitableeconomic growth for our people.
This, I know, is also the hope of many developing nations, that are striving to achievesocioeconomic development, while also contributing to climate stability.
What is at stake in this Congress and in your work is, a world that is changed for thebetter through the use of a cleaner, safer and more environment-friendly source ofenergy.
I therefore wish you every success in all your endeavours.
With that sentiment and by the grace of God, Bismillahirrahmanir rahim, I declare the2010 World Geothermal Congress officially open.
Thank you.
Wassalaamu'alaikum warahmatullahi wabarakatuh.
Oom Shanti, Shanti, Shanti Oom.

5