ADB Supports Geothermal Power Plants in Indonesia

30 March 2011: The Asian Development Bank (ADB) is set to approve a US$500 million loan to Indonesia to set up three geothermal power plants with a total capacity of 165 megawatts.

Djajang Sukarna, Secretary, Alternative and Renewable Energy and Energy Conservation Directorate General, Energy and Mineral Resources Ministry of Indonesia, indicated that the power plants would be constructed in Sungaipenuh in Jambi, Karaha, in West Java, and Mataloko in East Nusa Tenggara. He indicated the agreement would be signed in late 2011 and constructions of those power plants would commence in 2012. Pertamina Geothermal Energy (PGE), a subsidiary of state oil and gas firm Pertamina, would handle upstream operations at the Sungaipenuh Power Plant, while state electricity company PT PLN would handle downstream operations. To conduct the feasibility studies in the three areas, PLN received a grant from ADB totaling $1.5 million. [ADB Project Information Documents]