EPC contract handover with Chief Financial Officer of SEML, Mr. Tomohiro Yabushita (left) and The President Director & CEO of IKPT Mr. Atsushi Yoshihara (right).

PT Supreme Energy Muara Laboh (SEML) has entered into an Engineering, Procurement, and Construction (EPC) contract for the Muara Laboh Unit 2 geothermal power plant in West Sumatra, Indonesia. The agreement involves a consortium comprising Sumitomo Corporation, PT Inti Karya Persada Tehnik (IKPT), and PT Wasa Mitra Engineering (WME).

The EPC contract was formalized on December 24, 2024, with a handover ceremony occurring at SEML’s head office on February 13, 2025.

Muara Laboh Unit 2 is designed to have a capacity of 80 megawatts and is expected to begin operations in early 2027. Recently, SEML obtained $92.6 million in funding from the Asian Development Bank (ADB) for this project. Prior to that, SEML finalized an amendment to its power purchase agreement with PT PLN, covering both the 80-megawatt Muara Laboh Unit 2 and the 60-megawatt Muara Laboh Unit 3.

SEML operates as a joint venture between PT Supreme Energy, Sumitomo Corporation, and INPEX Corporation.

A public consultation took place shortly after the handover, involving representatives from PT Supreme Energy and the EPC consortium alongside communities linked to the Muara Laboh Unit 2 project.

Yasin Yunirwansyah from IKPT noted that over 50% of the project’s workforce will consist of local hires. He stated: “The need for workers during the 30-month project will peak at around 1,500 workers at the end of 2026. The number of workers will continue to decrease towards the completion of the construction of this power plant.” He added: “The implementation of recruitment and placement of workers will be carried out in accordance with statutory provisions and other requirements.” IKPT plans to prioritize readily available workers from South Solok Regency, assigning roles based on skill sets and specific competencies.

Ismoyo Argo, Senior Manager of Business Relations & General Affairs at Supreme Energy, underscored the project’s focus on benefiting South Solok and West Sumatra residents. He highlighted that nearly 90% of the workforce for Muara Laboh Unit 1 consists of locals, a figure that has risen over the past three years. Ismoyo remarked: “Without collaboration and synergy from all stakeholders, we cannot build and operate this PLTP. Hopefully this project will run smoothly and the production target can be on schedule in 2027.”

The initiative reflects a commitment to community engagement and local employment, aiming to ensure steady progress toward the 2027 operational target while supporting regional development.