PT Supreme Energy Muara Laboh (PT SEML), a joint venture between PT Supreme Energy Sumatera, Sumitomo Corporation, and INPEX GEOTHERMAL, LTD., has commenced the development phase of the Muara Laboh Geothermal Power Plant (GPP) Unit 2 in West Sumatra, Indonesia.
The milestone was marked by a First Well Drilling Ceremony held in the Liki Pinangawan Muaralaboh Geothermal Working Area (WKP), Solok Selatan Regency, attended by government officials, representatives from the Ministry of Energy and Mineral Resources (MEMR), PT PLN (Persero), and PT SEML management.
The Unit 2 expansion, with an additional capacity of 80 MW, involves drilling six to eight production and injection wells. Construction is scheduled for completion by end of 2027, in line with the amended Power Purchase Agreement (PPA) with PT PLN (Persero) for Units 2 and 3, signed in December 2024. Electricity generated will be supplied to PLN’s Sumatra grid, strengthening the region’s renewable energy supply and providing power for about 435,000 households, while cutting carbon emissions by around 460,000 tons annually.
In January 2025, PT SEML secured US$490 million in financing from a consortium including the Japan Bank for International Cooperation (JBIC), Asian Development Bank (ADB), Mizuho Bank, Sumitomo Mitsui Banking Corporation (SMBC), MUFG Bank, and Hyakugo Bank, with insurance from Nippon Export and Investment Insurance (NEXI). PT Plumpang Raya Anugerah will serve as the drilling contractor, while the EPC consortium consists of Sumitomo Corporation, PT Inti Karya Persada Tehnik, and PT Wasa Mitra Engineering. Fuji Electric will supply the main turbine and generator equipment.
The Unit 2 project is expected to generate local economic benefits through royalty payments, production bonuses, and employment for around 1,500 workers during construction, as well as opportunities for regional contractors and suppliers.
The Muara Laboh Unit 1 (85 MW) has been in successful commercial operation since December 2019. Beyond this project, PT Supreme Energy has also developed the Rantau Dedap Geothermal Power Plant (91.2 MW) in South Sumatra, operational since December 2021, and is preparing for exploration activities at the Gunung Rajabasa WKP in South Lampung under PT Supreme Energy Rajabasa (PT SERB), following completion of the PPA extension with PT PLN (Persero).