The Asian Development Bank (ADB) has approved a USD92.6 million financing deal to support Indonesia’s geothermal energy expansion. This funding will help expand the Muara Laboh geothermal facility in West Sumatra and construct a new power plant with an 83 MW capacity. The financing includes contributions from ADB’s capital resources, a syndicated loan from Sumitomo Mitsui Banking Corporation, and concessional funding from the Australian Climate Finance Partnership.
Indonesia, holding the world’s largest geothermal energy reserves, currently uses only a fraction of its potential. ADB has supported multiple geothermal projects in the country since 2013, including Muara Laboh and the Sarulla geothermal power project. This deal continues ADB’s efforts to boost renewable energy capacity in Indonesia, helping to meet growing energy demands while reducing reliance on fossil fuels.