Muara Laboh is the first geothermal power plant in West Sumatra. (Photo: ESDM)
Inpex, the Japanese energy giant that recently announced a joint exploration partnership with Indonesia's state-owned electricity company PLN, is reportedly planning to expand its geothermal energy operations in Indonesia, aiming to double its power generation capacity to 170 MW.
In addition, the Indonesian Ministry of Energy and Mineral Resources (ESDM) has stated that the review time for future geothermal energy projects will be significantly reduced to just 5 days.
Inpex plans to double the scale of its geothermal energy operations
According to Nikkei Asia, Inpex is finalizing the expansion of its Muara Laboh geothermal power plant in West Sumatra, with plans to sell all generated electricity to PLN. Although the specific investment amount remains unclear, initial estimates suggest it could reach several hundred billion yen.
The Muara Laboh plant, which began operations in 2019, currently generates approximately 85 MW of power, enough to supply electricity to around 420,000 households on Sumatra Island for one year. Initially owned by Sumitomo Corporation, Supreme Energy of Indonesia, and France’s Engie, Inpex joined the project in 2021 and has gradually increased its stake in the plant.
Founded in 2006, Inpex primarily engages in fossil fuel exploration and production (E&P). However, in line with the global push for net-zero emissions, Inpex's Vision 2022 plan outlined five net-zero business, including the production of green hydrogen and ammonia, carbon capture technology, and the development of geothermal and offshore wind power, with a goal of reaching net-zero by 2050.
Regarding geothermal development, Inpex is involved in three geothermal power plants in Indonesia, leveraging its drilling technology. Additionally, the company is currently building a geothermal plant in Akita Prefecture, Japan.
MoU was signed for a joint geothermal development study between INPEX and PT PLN in Bali, Indonesia. (Photo: Inpex)
Indonesia's geothermal potential remains to be developed
Indonesia has immense untapped geothermal potential, with reserves estimated at 27.79 GW, making it the second-largest geothermal reserve country in the world, after the United States. However, its current utilization is below 10%.
To accelerate development, ESDM Director General Eniya Listiani Dewi said in November that the government is working to streamline project approval processes, aiming to reduce the current 18-month review period to just 5 days.
She stated that future applications will be processed through the Online Single Submission (OSS) system, with expedited field assessments and environmental impact reviews. The Ministry of Energy and Mineral Resources expects to see noticeable improvements in the approval process in the coming months.
Source: PwC Indonesia, Nikkei Asia、INPEX
