Muara Laboh Geothermal Power Plant, West Sumatra, Indonesia
The project, valued at approximately USD 500 million, has secured USD 370 million in funding through the Asia Zero Emission Community scheme, including USD 92.6 million from the Asian Development Bank. This financial support underscores the project’s role in advancing sustainable energy development in Indonesia.
Earlier this year, PT Supreme Energy Muara Laboh finalized a revised power purchase agreement with PT PLN, Indonesia’s state-owned power distributor, covering both Units 2 and 3. The agreement aligns with the pricing structure outlined in Presidential Decree 112 of 2022, ensuring a stable framework for the project’s energy output.
The financial agreement was signed during a visit by Fumio Kishida, former Japanese Prime Minister and current Special Envoy, to Indonesia. During his visit, Kishida met with Indonesian President Prabowo Subianto to discuss bilateral cooperation, highlighting the strong partnership between the two nations in supporting sustainable energy initiatives.
The Muara Laboh geothermal project contributes to Indonesia’s renewable energy goals by harnessing geothermal resources to provide clean, reliable power. Unit 2’s development, followed by Unit 3, will expand the region’s capacity to meet growing energy demands while reducing reliance on fossil fuels.
The collaboration between PT Supreme Energy Muara Laboh, its joint venture partners, and international financiers like the Japan Bank for International Cooperation and the Asian Development Bank reflects a commitment to sustainable infrastructure. The project’s progress, supported by the revised power purchase agreement and substantial funding, positions it as a key component of Indonesia’s efforts to enhance its renewable energy sector and promote environmental sustainability in West Sumatra.
