PT Medco completed exploration in Ijen, East Java

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Project works at the Blawan Ijen project site, East Java (source: Medco Energi)

PT Medco has concluded its exploration on the Ijen geothermal project in East Java, preparing the next steps to develop a geothermal power plant.

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 now plans to continue mining of the resource.

The drill site is located around the natural tourist attraction of Wurung Crater. Managing Director of PLTP Ijen – PT. Medco Geothermal Indonesia, Novianto claimed to have completed the exploration phase and updates on some aspects of job creation for the area. The project is a development partnership between PT Medco and Ormat Technologies.

His party is currently dealing with other licenses, one of which is the approval of the Ministry of Energy and Mineral Resources (Energy and Mineral Resources) related to the exploitation phase.

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

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

“Because the power plant activity is located in the Wurung (Bondowoso) crater. Of course, the employees, the working parts, have to be close to each other,” he explained.

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

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

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

“When I talk about when it’s in production, there are operators, there are engineers, there are those who work on a daily basis for the inspectors in the field. And they will also need security, transportation,” he explained.

Novianto said that at the time of the drilling alone, about 300 people who lived around Ijen sub-district were involved. In addition, later, there will be funds for the production bonus and taxes from the local government. Whereas for production sharing based on government regulations, the amount is 0.5% of sales which are directly cut by the state. The next step will be to share the results with the region.

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

“And as is the case 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, Bondowoso’s sub-regent Irwan Bachtiar Rahmat said what was conveyed by PT. Medco will be bound by a cooperation agreement (PKS).

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

According to him, it was also agreed that the labor absorption will give priority to the citizens of Bondowoso. They will even be educated to become professionals.

“That’s what Medco promised. Later, it will be bound by an agreement between its staff and the agencies concerned. PKS will,” he explained.

Source: Times Indonesia

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