The utilization of geothermal energy in Japan might not be as effective as one in Iceland. In Japan, there usually are hot spring related facilities in those place where the geothermal energy exist. So, I have heard of those hot spring facilities being against making the geothermal energy plant.
I don't think it's so big problem, but there is another reason why Japanese government takes no action to make geothermal plants. I heard making electricity through geothermal power, is not the cheapest way. Unfortunately, we can make electricity from nuclear power cheaper than other ways. Even though Japan have to import, still it's more effective to use nuclear.