Legal Protection for Investment in Geothermal Energy Development and Utilization in North Sumatra Province
Abstract:
The purpose of this research was to study and analyze the legal protection of the management of the implementation of the development and utilization of geothermal energy in the Province of North Sumatra. This research is prescriptive which offers concepts to solve a problem and is not just descriptive. Sources of data used in this research were secondary data collected through literature (documentary research) and the legal approaches and case studies. The results of this study found that legal protection is provided by the local government of North Sumatra in the Sibayak PLTP, Sarulla PLTP, and Sorik Marapi PLTP, to investors in carrying out thermal development and utilization activities in the form of ease of doing business such as business permits, business security and legal certainty guarantees. However, tax reductions, compensation and incentives are not made consistently available to investors, though there exist provisions. The study suggests that Ministry of Energy and Mineral Resources (ESDM) should develop more lenient compensation and incentive schemes or reimbursement costs for exploration activities and developing geothermal infrastructure.
Keyword:
Legal Protection, Investment, Geothermal, North Sumatra