SURABAYA: PT Medco Energi International through its subsidiary will invest US$35 million in 2012 to hold an exploration of geothermal in Kawah Ijen, Bondowoso, East Java.Chief Operating Officer Power Mining and Downstream Medco Power Indonesia Budi Basuki said the investment is only prepared for researching the heat level and checking the energy that will be exploited from Kawah Ijen.During this time, Medco has guidelines of Kawah Ijen which has a potency to produce electricity up to 2x55 megawatt. We will be finishing exploration at least in 3 years or until 2015, he said in Surabaya, yesterday.The company which operated by Arifin Panigoro family won bidding of geothermal power plant projects (PLTP) Ijen for two stages, with a capacity of 55 megawatt respectively.Based on Bisnis data, the selling price of geothermal in PLTP Ijen is US$8.55 cent per kwh.In 2011, Medco only conducted geological survey. The rest will be done in 2012.Kawah Ijen, as he said, is difficult for exploration since the area is located about 70 km from the hillside and the exploration needs a long period of time.The cooperation contract between the company and the government is valid for 30 years after the signing, he said.Meanwhile, in East Java, there are 11 geothermal locations, including Ngebel and Ijen with overall potency of 1,100 megawatt. PT Pertamina Geothermal Energy will conduct an initial survey in Argopuro Mountain area. Besides, there is still geothermal potency of 275 megawatt in Arjuno-Welirang mountain area. The initial survey in that area will be done by Geological Agency at Ministry of Energy and Mineral Resources.In Pacitan Municipal there are two geothermal locations, while in Sumenep Municipal there is also one potential location. The ministry will also have an initial survey of geothermal potency in Songgoruti Mountains, in Malang and Pandan Mount in Madiun, Bojonegoro Municipal. (k21)(t03/msw)

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