Financial close reached for Muara Laboh geothermal power plant Unit 2, Indonesia
Muara Laboh Geothermal Power Plant, West Sumatra, Indonesia (source: PT Supreme Energy Muara Laboh)
Carlo Cariaga
5 May 2025
With the support of Japanese partners, a financial close has been reached for the Muara Laboh geothermal power plant Unit 2 with target COD of 2027.
A financial close agreement has been signed between PT Supreme Energy Muara Laboh (SEML) and the Japan Bank for International Cooperation (JBIC) for Unit 2 of the Muara Laboh geothermal power plant in West Sumatra, Indonesia. The project has a planned 80-MW installed capacity and a target commercial operations date by 2027.
PT SEML is a joint venture between PT Supreme Energy, Sumitomo Corporation, and INPEX Geothermal Ltd. In addition to the Unit 2 power plant, another Unit 3 power plant is planned to be developed to be operational by 2033.
Indonesia has received funding support for the project from the Asia Zero Emission Community (AZEC) scheme amounting to USD 370 million. Part of this is the previously announced financing of USD 92.6 million from the Asian Development Bank. The total value of the project is projected to be around USD 500 million.
Earlier this year, PT SEML signed a revised PPA with power distributor PT PLN which will cover both Units 2 and 3 of the Muara Laboh geothermal power project. The new PPA follows the power purchase price as set by Presidential Decree 112 of 2022.
The signing of the financial agreement coincided with the visit of former Japanese Prime Minister and now Special Envoy of the Japanese Prime Minister, Fumio Kishida, to Indonesia. The foreign official me with Indonesian President Prabowo Subianto, where the two parties reinforced their strong bilateral partnership, amidst an unstable global situation.
RELATED: EPC contract signed for Muara Laboh Unit 2 geothermal power plant, Indonesia
Source: Kontan.co.id and Digivestasi
