Indonesia-Japan Agree to Develop Muara Laboh Geothermal Power Plant under AZEC Framework
- STIC CEGIR
- May 28
- 1 min read
The governments of Indonesia and Japan have agreed to develop the Muara Laboh Geothermal Power Plant (PLTP) in Solok, West Sumatra through the Asia Zero Emission Community (AZEC) coorperation framework. The 80-megawatt project reached financial close on April 18, 2025, and will soon enter the construction phase. The project is being developed by PT Supreme Energy Muara Leboh in collaboration with the Japan Bank for International Coorperation and is expected to begin commercial operation in the first quarter of 2027.
In addition to the Muara Laboh PLTP project, both countries are also promoting the acceleration of other clean energy initiatives, such as the Legok Nangka Waste-to Energy project, Sustainable Aviation Fuel, the Sarulla Geothermal Power Plant, and the Java-Sumatra transmission network. The visit of the Special Envoy of the Prime Minister of Japan reaffirmed the shared commitment to accelerating the transition to low-carbon energy and green economy. Trade and investment volumes between Indonesia and Japan continue to grow, reflecting the strong confidence of Japanese private sectors in Indonesia’s economic prospects.
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