EPC contract signed for Muara Laboh Unit 2 geothermal power plant, Indonesia
EPC contract handover with Chief Financial Officer of SEML, Mr. Tomohiro Yabushita (left) and The President Director & CEO of IKPT Mr. Atsushi Yoshihara (right). (source: IKPT)
Carlo Cariaga
25 Feb 2025
PT Supreme Energy Muara Laboh has awarded the EPC contract for the Muara Laboh Unit 2 geothermal power plant to a consortium of local and foreign partners.
PT Supreme Energy Muara Laboh (SEML) has signed the Engineering, Procurement, and Construction (EPC ) contract for the Muara Laboh Unit 2 geothermal power plant in West Sumatra, Indonesia to a consortium of Sumitomo Corporation, PT Inti Karya Persada Tehnik (IKPT) and PT Wasa Mitra Engineering (WME).
The EPC contract was officially signed on 24 December 2024, while a handover contract ceremony was held at the head office of SEML on 13 February 2025.
Muara Laboh Unit 2 has a planned installed capacity of 80 MW and is scheduled to be operational by early 2027. Just recently, SEML secured financing of USD 92.6 million from the Asian Development Bank (ADB) for the project. Shortly before that, SEML also announced an amendment of their PPA with power distributor PT PLN for the 80-MW Muara Laboh Unit 2 and the 60-MW Muara Laboh Unit 3.
SEML is a joint venture between PT Supreme Energy, Sumitomo Corporation, and INPEX Corporation.
Engaging with local communities
A few days after the handover ceremony, representatives of PT Supreme Energy and the EPC consortium held a public consultation event with the communities associated with the Muara Laboh Unit 2 project.
Yasin Yunirwansyah of IKPT explained that the workforce for the projects will be composed of more than 50% of local works. “The need for workers during the 30-month project will peak at around 1,500 workers at the end of 2026. The number of workers will continue to decrease towards the completion of the construction of this power plant,” he said further.
“The implementation of recruitment and placement of workers will be carried out in accordance with statutory provisions and other requirements,” said Yasin. According to him, IKPT will target ready-for-hire workers in the South Solok Regency. The placement of workers will be based on their skills, particularly in certain competencies.
Ismoyo Argo, Senior Manager of Business Relations & General Affairs of Supreme Energy, further emphasized that the project will prioritize the people of South Solok and West Sumatra. This has also been the case for Muara Laboh Unit 1, where almost 90% of the workforce are local residents. This number has continued to grow in the last three years.
“Without collaboration and synergy from all stakeholders, we cannot build and operate this PLTP. Hopefully this project will run smoothly and the production target can be on schedule in 2027,” concluded Ismoyo.
Source: PT Supreme Energy via LinkedIn, IKPT, and PetroMiner
