PT Supreme Energy Muara Laboh Powers Indonesia's Green Future with Major ADB Financing

The Asian Development Bank (ADB) has initiated a significant step towards enhancing Indonesia’s green energy framework by sanctioning a $92.6 million financing agreement with PT Supreme Energy Muara Laboh (SEML). This investment targets the expansion of a geothermal facility at Muara Laboh in West Sumatra, through the development of a new 83 MW capacity geothermal power plant. The financial package comprises $38.8 million from ADB’s ordinary capital resources, a $38.8 million syndicated ADB B loan from Sumitomo Mitsui Banking Corporation, and a $15 million concessional loan from the Australian Climate Finance Partnership (ACFP). The transaction, the first in Indonesia’s greenfield geothermal Independent Power Producer sector, mobilizes private commercial capital with uncovered project risks. Parallel financiers include the Japan Bank for International Cooperation and commercial banks under Nippon Export and Investment Insurance. This project is not just a leap in the renewable energy sector, it also addresses Indonesia’s clean energy targets and supports national energy security. ADB, alongside partners including the Government of Australia, mitigates risks inherent in geothermal investments, thus pushing forward crucial energy projects like Muara Laboh Stage 1, Rantau Dedap, and Sarulla. SEML, a joint venture of PT Supreme Energy, Sumitomo Corporation, and INPEX Corporation, aims to capitalize on Indonesia's vast geothermal potential, enhancing job creation and community development through sustainable energy projects. ADB plays a pivotal role in advancing Asia’s sustainable energy transition and socio-economic growth while combating poverty.