PT Medco has completed exploration at Ijen, East Java

PT Medco Geothermal Indonesia has completed geothermal exploration of the Ijen geothermal power project in Bondowoso Regency, East Java, so local news in mid-April 2022. The company is now planning to push ahead on exploitation of the resource.

The drilling location is located around the Wurung Crater natural tourist attraction.  General Manager of PLTP Ijen – PT. Medco Geothermal Indonesia, Novianto claimed to have completed the exploration stage and updates on some job creation aspects for the region. The project is a development partnership between PT Medco and Ormat Technologies.

His party is currently taking care of further licensing, one of which is approval to the Ministry of Energy and Mineral Resources (Energy and Mineral Resources) related to the exploitation stage.

According to him, it is estimated that by the end of 2022 the preparation of generating equipment will have been completed. Then the next two years can already produce.

During the production process, Medco will build an employee mess and office in Bondowoso, not Banyuwangi.

“Because the power plant activity is located in Wurung Crater (Bondowoso). Of course, the employees, the parties who work, must be close together,” he explained.

According to him, the workforce itself is divided into two. Namely workers who work directly, and work indirectly.

As for workers who work indirectly, such as security. It takes about 13-15 people. Then 36 operators and also several drivers.

He confirmed that the worker was a Bondowoso resident. Because his party is committed to prioritizing the absorption of workers from Earth, Ki Ronggo.

“When I speak when it is in production, there are operators, there are engineers, there are those who work daily for inspectors in the field. And they will also need security, transportation,” he explained.

Novianto said that at the time of the drilling alone, around 300 people who lived around the Ijen sub-district were involved. Not only that, later there will be funds for the production bonus, and taxes with the local government. Where for production sharing based on government regulations, the amount is 0.5 percent of sales which is directly cut by the state. Next will be sharing the results with the region.

Even if later divided into two districts there is also a mechanism. As is currently happening in Bondowoso-Banyuwangi. After self-exploration, it turns out that 60 percent of the work is in Bondowoso.

“And as it is now, the production well is in Bondowoso. The generator is in Bondowoso. The injection source is located in Bondowoso. Of course, the portion will be bigger,” he explained.

Meanwhile, the Deputy Regent of Bondowoso, Irwan Bachtiar Rahmat, said that what was conveyed by PT. Medco will be bound in a cooperation agreement (PKS).

He hopes that, after exploitation, Bondowoso’s PAD will increase. “Later, of course, there will be an agreement like that,” he added.

According to him, it has also been agreed that the absorption of the workforce will prioritize the citizens of Bondowoso. They will even be educated to become professionals.

“That’s what Medco has promised. Later it will be tied with an agreement between its workforce and the relevant agencies. PKS will do it,” he explained.

Source: Times Indonesia