Once it comes into operation the new law will cover operational management, adjudicate revenue splits between the central and regional governments, and act as a division of authority between the two bodies on the matter of geothermal resource management.

Indonesia Minister of Research and Technology, Hatta Radjasa, believes that the law will attract investors to the sector and that regions with geothermal resources would stand to benefit from the investment. It is believed that one of the incentives offered includes tax facilities, which according to Irwan Prayitno of the Reform faction will guarantee returns on investment and insure that contracts will be respected.

Indonesia already sits on 40% of the world's geothermal resources and Golkar Party spokesperson Rustam E. Tamburaka said that the new law would help prevent the country from undergoing a power crisis.

Currently, Indonesia's six geothermal plants produce around 747.5 MW of power but, with the right investment (and more geothermal plants), the country has the potential to produce 20,000 MW of electricity.