Geothermal Investment Legal Protection Policy in North Sumatra

Abstract

Geothermal is an alternative energy that can be renewed (renewable). In the context of energy security. The purpose of this study is to analyze the legal protection of the implementation of the development and utilization of geothermal energy in North Sumatra Province. The research method used in this research is the normative juridical research method. This research is prescriptive in nature which offers a concept to solve a problem (problem-solving) and is not just descriptive (just to describe something as it is). Sources of data used in this study are secondary data collected through literature (documentary research) and the Law approach. The results of this study found that the implementation of geothermal energy management policies for power plants had already existed starting from the pre-issuance of the 2003 Law on Geothermal Energy. However, the issuance of the Law has not been able to increase investor interest, so in 2014 the government revised the 2003 Law by issuing Law no. 21/2014 with the aim that areas that have geothermal potential can be explored. Legal protection provided by the local government of North Sumatra at PLTP Sibayak, PLTP Sarulla, and PLTP Sorik Marapi, to investors in carrying out development and heat utilization activities in the form of business conveniences such as business permits, business security, and legal certainty guarantees. But other than that, such as tax deductions, compensation and incentives have not been realized.

Keywords: Legal Protection, Investment, Geothermal