Muara Laboh Unit 2 PLTP Targeted To Be Completed In 2027

Minister of Energy and Mineral Resources Yuliot Tanjung (Photo: dock. VOI)

JAKARTA - The development of the Muara Laboh geothermal project is entering a new chapter. The Muara Laboh Unit 2 Geothermal Power Plant (PLTP) strategic project with a capacity of 80 MW and unit 3 with a capacity of 60 MW in West Sumatra has reached financial close.

Deputy Minister of Energy and Mineral Resources Yuliot Tanjung said that the financial close of PLTP Muara Laboh was a continuation of the signing of the Electricity Sale and Purchase Agreement (PJBL) between PT PLN (Persero) and the company PT. Supreme Energy Muara Laboh (SEML) on December 16, 2024.

"One of the bilateral meeting agendas of the Government of Indonesia and the Government of Japan today is the energy sector, with the achievement of the financial close of the Muara Laboh Unit 2 PLTP which is targeted for completion in 2027," Yuliot said as quoted on Tuesday, May 6.

Bilateral meetings between the Government of Indonesia and the Government of Japan were held at the office of the Coordinating Ministry for Economic Affairs. This meeting discussed various global issues and future collaborations that are sustainable, low in carbon, and related to clean energy through the framework of the Asia Zero Emission Community (AZEC).

In this case, the Government of Indonesia is represented by the Coordinating Minister for the Economy and the Deputy Minister of Energy and Mineral Resources, and the Government of Japan with the leadership of the delegation of Japanese Prime Minister for the period 2021-2024, Fumio Kishida, and Member of the Council of Representatives of the People of Japan (House of Representatives).

"Today's meeting with Japan underscores the importance of collaboration between countries in accelerating the energy transition, and clear evidence of the progress of this collaboration," said Yuliot.

Just so you know, the funding for the Muara Laboh PLTP project was obtained by PT Supreme Energy Muara Laboh (SEML) from a leading financial institution, namely Japan Bank for International Cooperation (JBIC), Asian Development Bank (ADB), as well as private financial institutions such as Miziho Bank, Sumitomo Mitsui Banking Corporation (SMBC), MUFG Bank, and The Hyakugo Bank.

Meanwhile, the Director General of New, Renewable Energy and Energy Conservation (EBTKE) of the Ministry of Energy and Mineral Resources, Eniya Listiani Dewi, said that the Muara Laboh 2 & 3 PLTP tariff has a different rate from unit 1.

"This is the first unit negotiations first, the price is still at a long price. Now the second and third units are in accordance with Presidential Decree 112 of 2022 (regarding the Acceleration of Renewable Energy Development for the Provision of Electricity) which is the decision here," he explained.

Overall, continued Eniya, the development of the Muara Laboh 2 and 3 PLTP will encourage new investments worth a total of USD992 million. In addition to the Muara Laboh Unit 2 and 3 PLTP projects, several other energy projects that have been included in the framework of the AZEC, namely the Legok Nangka PLTSa, then the Sustainable Aviation Fuel, and the Sarulla PLTP, as well as the transmission network from Java-Sumatra.