Ahmad – The policy of the Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, of awarding a geothermal project concession in Telaga Ranu, West Halmahera, to PT Ormat Geothermal Indonesia, a subsidiary of Ormat Technologies, has sparked criticism from several groups.
Ormat, which was given the concession on Monday February 12, is known to be a US-based geothermal energy company that has business affiliations with Israel.
A coalition of civil society organisations believes the decision needs to be reviewed. The executive director of the Indonesian Forum for the Environment (Walhi) said in a written statement, "The government must not turn a blind eye to the company's track record, which is suspected of causing environmental damage and social conflict in various operational areas", read the Walhi press release on Tuesday February 13.
A Deduksi media investigative series titled Hasbara's Track Record in Israel-Indonesia Geothermal Business Cooperation, previously examined Ormat's business network and the alleged impacts of its operations. The report stated, "Ormat projects in Indonesia have left behind issues of groundwater pollution, damaged agricultural land, and the criminalisation of residents who object", Deduksi wrote in its investigative report.
Several residents in operational area have also complained about the social impacts of geothermal projects. A resident representative who declined to be named said, "We have lost our clean water source since the drilling began. Our agricultural land has also been affected", as quoted in Deduksi's field report.
Aside from environmental concerns, criticism has also focused on geopolitical aspects. Palestine solidarity activists, during a public discussion in Jakarta, stated, "Giving concessions to Israeli-affiliated companies contradicts Indonesia's foreign policy commitment to support Palestinian independence", according to an official statement from the discussion committee on Wednesday February 14.
Responding to the polemic, the Ministry of Energy and Mineral Resources emphasised that geothermal projects are part of the national energy transition strategy. "Geothermal development is important for increasing the mix of new and renewable energy and reducing dependence on fossil fuels", said a ministry official in an official press release on Monday February 12.
An energy policy observer from an independent research institute also emphasised the importance of accountability. "The energy transition must not sacrifice local community rights and environmental protection. The government must disclose the Environmental Impact Assessment (AMDAL) documents and ensure public participation", he said as quoted in an interview with a national media outlet on Tuesday.
As of submitting this article, PT Ormat Geothermal Indonesia has not issued an official response to the growing criticism. The West Halmahera community has stated that they will monitor the permit process and have requested open dialogue before the project enters the full exploration phase. This controversy has once again placed the government in the middle of a debate between the need for renewable energy investment and demands for transparency, particularly regarding cooperation with companies affiliated with Israel.
[Translated by James Balowski. The original title of the article was "Pemerintah Tuai Kritik Setelah Beri Konsesi Panas Bumi ke Perusahaan Terafiliasi 'Israel'".]
