Drilling starts for 80-MW expansion of Muara Laboh geothermal site, Indonesia
Drilling operations for the first well for Unit 2 of the Muara Laboh geothermal power plant, Indonesia (source: PT Supreme Energy)
Carlo Cariaga
17 Oct 2025
Drilling has started for the 80-MW Unit 2 expansion of the Muara Laboh geothermal production field in Sumatra, Indonesia, targeting completion by end of 2027.
PT Supreme Energy Muara Laboh (SEML) has officially started drilling operations for the 80-MW Unit 2 expansion of the Muara Laboh geothermal power production field located in West Sumatra, Indonesia. The plan is to drill a total of six to eight production and reinjection wells, and for the construction of the Unit 2 power plant to be completed by the end of 2027.
With an installed capacity of 85 MW, Muara Laboh Unit 1 has been operational since December 2019. Expansion plans steadily made significant progress since the start of 2025, starting with the signing of an amended PPA with power distributor PT PLN for Units 2 and 3, the signing of a USD 92 million loan from the Asian Development Bank, as well as the signing of contracts for the EPC contractor and the power plant equipment supplier.
PT SEML has set a total investment of about USD 490 million for the expansion project. The company is a joint venture between PT Supreme Energy, Sumitomo Corporation, and INPEX Corporation.
“The electricity generated will be distributed by PT PLN through the Sumatra network to increase the energy mix from renewable energy and strengthen the electricity supply in the region, for around 435,000 households,” stated PT SEML in an official statement.
President Director of PT SEML Nisriyanto further emphasized the the project will contribute royalties and production business, thus boosting regional economic development. Moreover, it will create employment opportunities for around 1,500 workers during the construction period.
“Around 80 percent of the workforce involved is from the local community. In addition to creating jobs, SEML also contributes Rp 30 billion per year to Regional Original Income (PAD) from Unit 1, which is expected to increase to around Rp 60 billion per year with the operation of Unit 2,” added Khairunas, the Regent of South Solok.
Source: Padang Raya News and Bisnis.com
