On 2 March 2012, the Power Purchase Agreements (PPAs) for the Muara Laboh and Rajabasa geothermal power plants have been signed between the Indonesian state-owned electricity utility company PT Perusahaan Listrik Negara (PLN) (Persero) and the two project companies. The projects will be carried out by PT Supreme Energy Muara Laboh and PT Supreme Energy Rajabasa, on behalf of PT Supreme Energy, International Power (IPR – GOF SUEZ Asia) and Sumitomo Corporation.
At the same time, the Ministry of Finance has issued Government Guarantee Letters for the two project companies pursuant to Minister of Finance Regulation No. 139/PMK.011/2011 on PLN’s Business Viability.
Muara Laboh and Rajabasa are the first two geothermal power plant projects under the Second 10,000 MW Fast Track Program, which includes 4,000 MW of geothermal power, and as such will serve as a showcase projects for future geothermal power plant projects and as precedents for how the associated government guarantee framework will operate.
Muara Laboh, located in South Solok Regency, West Sumatra Province, and Rajabasa, located in South Lampung Regency, Lampung Province, will generate 220 MW each, which will place them amongst the largest geothermal projects globally, and are expected to enter commercial operation in 2016, following production well drilling in 2012 and plant construction during 2013-2016. The projects are being developed as Independent Power Producers (IPPs).
Lubis Ganie Surowidjojo (LGS) acts for the Government of the Republic of Indonesia, advising the Ministry of Finance on the issuance of guarantees.