PM Shigeru Ishiba Confirms Japan's Participation in Indonesia's Muara Laboh Power Plant Development

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January 12, 2025 | 06:01 pm

Indonesian President Prabowo Subianto (right) and Japanese Prime Minister Shigeru Ishiba (left) are seen walking together passsing the children waving flags of both nations during a state visit at the Bogor Palace, Bogor City, West Java, January 11, 2025. Japanese Prime Minister Shigeru Ishiba's state visit to Indonesia was to discuss a number of collaborations between the two countries. ANTARA/Aditya Pradana Putra

TEMPO.CO, Jakarta - Japanese Prime Minister Shigeru Ishiba said Japan is committed to taking part in the development of the Muara Laboh Geothermal Power Plant (PLTP) in Indonesia.

When meeting President Prabowo Subianto at the Bogor Presidential Palace, Ishiba said Japan had agreed to increase cooperation on sustainable energy supply. Including decarbonization cooperation such as the Muara Laboh PLTP and biophilic ammonia hydrogen energy.

"We have confirmed cooperation in the fields of decarbonization and energy, as well as important mineral mining such as the Muara Laboh PLTP under the Asia Zero Emission Community and also biophilic ammonia hydrogen and so on," said Ishiba at the Presidential Palace, Bogor, West Java, January 11, 2025.

According to Ishiba, Japan wants to encourage cooperation with Indonesia in the fields of natural resources and infrastructure to maintain energy security and decarbonization through various means.

Meanwhile, President Prabowo welcomed Japan's involvement in the energy sector and industrial downstreaming in Indonesia. He said the meeting with the Japanese delegation was quite dense and discussed a lot of bilateral cooperation.

"We discussed many issues of bilateral cooperation, important regional and world geopolitical issues, and also a shared commitment to continue cooperation in the economic and infrastructure sectors, as well as in the fields of energy security, industrial downstreaming," said Prabowo.

The Muara Laboh PLTP in South Solok Regency, West Sumatra, is one of three priority projects for Indonesia-Japan cooperation in the energy transition sector within the framework of the Asia Zero Emission Community (AZEC). AZEC includes the construction of a Geothermal Power Plant in Muara Laboh, a Waste Power Plant (PLTSa) in Legok Nangka, and peatland management for food commodities in Central Kalimantan.

The Muara Laboh PLTP was developed by PT Supreme Energy Muara Laboh (SEML). This company is a joint venture between PT Supreme Energy, ENGIE and Sumitomo Corp. The Muara Laboh PLTP Phase-1 has been operating commercially since December 16, 2019. This phase 1 PLTP has a capacity of 85 megawatts (MW) net.

Last December, PT Supreme Energy Muara Laboh signed an amendment to the power purchase agreement (PJBTL) with PT PLN (Persero) for the development of units 2 and 3 of 140 MW of the Muara Laboh Geothermal Power Plant (PLTP). The project requires an investment of US$ 900 million.

MUHAMMAD HENDARTYO and HAMMAM IZZUDDIN participated in the writing of this article.

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