By Calvin Purba
Geothermal developer PT Supreme Energy and the Japan Bank for International Cooperation (JBIC) have officially signed the financial close for the Muara Laboh Unit 2 Geothermal Power Plant (PLTP) project. This is a significant step in the ongoing development of the Muara Laboh Geothermal Power Plant in Solok, West Sumatra, which is set to begin commercial operation in 2027.
The signing ceremony was attended by Coordinating Minister for Economic Affairs Airlangga Hartarto on Monday.
The project, valued at approximately US$ 500 million, is a key part of Indonesia’s push towards increasing clean and sustainable energy sources. The Muara Laboh Unit 2 will have a total capacity of 80 MW and will operate under a long-term power purchase agreement (PPA) with PT PLN (Persero), Indonesia's state-owned electricity company, extending until 2052.
Read also: Supreme Energy targets financial close for Muara Laboh Unit 2 expansion
The Muara Laboh Unit 2 project is being developed by PT Supreme Energy Muara Laboh (SEML), a joint venture between INPEX, Sumitomo Corporation, and PT Supreme Energy
The financial close for the Muara Laboh Unit 2 follows the successful completion of similar projects, including the Legok Nangka waste-to-energy project, Sustainable Aviation Fuel development, and the Sarulla Geothermal Power Plant (PLTP), which also marked their respective milestones in energy production.
This achievement is seen as a strategic move in Indonesia's energy transition efforts, with Geothermal Energy becoming increasingly important in the country's commitment to clean energy and emission reduction. Airlangga Hartarto, noted that the project aligns with Indonesia’s Asia Zero Emission Community (AZEC) collaboration with Japan, a framework designed to drive clean energy projects in the region.
Editing by Alexander Ginting
