Supreme Energy building second geothermal plant in West Sumatra - Asian Business Review
Published December 20, 2025
Supreme Energy Develops Second Geothermal Plant in West Sumatra
Supreme Energy, an Indonesian renewable energy company, is advancing its efforts in sustainable energy by constructing its second geothermal power plant in West Sumatra. This project aligns with Indonesia's broader strategy to enhance its renewable energy portfolio and reduce reliance on fossil fuels.
The new geothermal plant, named the Muara Labuh Geothermal Power Plant, is situated in the South Solok Regency of West Sumatra. With an expected capacity of 220 megawatts (MW), this facility will significantly contribute to the region's energy supply, supporting both local and national energy needs. The project is part of Supreme Energy's ongoing commitment to harness the geothermal potential of Indonesia, which is home to around 40% of the world's geothermal resources.
Supreme Energy has been actively engaged in the geothermal sector for several years. The company previously established its first geothermal plant, the Wayang Windu Geothermal Power Plant, which has been operational since 1999 and has a capacity of 110 MW. With the addition of the Muara Labuh plant, Supreme Energy aims to double its geothermal energy production and further solidify its position as a key player in the renewable energy landscape of Indonesia.
The Muara Labuh project has already received the necessary regulatory approvals and is moving forward with construction. The development is expected to create numerous job opportunities for local residents, contributing to economic growth in the area. Supreme Energy is committed to engaging with the local community throughout the construction process, ensuring that their concerns are addressed and that they benefit from the project.
Geothermal energy is a crucial component of Indonesia's energy mix, which aims to achieve a target of 23% renewable energy by 2025. The government has set ambitious goals to increase the share of renewable energy in the national energy supply, recognizing the importance of transitioning to cleaner energy sources to combat climate change and promote sustainable development.
In addition to its environmental benefits, geothermal energy offers a stable and reliable power source. Unlike solar and wind energy, which are dependent on weather conditions, geothermal energy provides a consistent supply of electricity, making it an attractive option for meeting the growing energy demands of Indonesia's population.
The Muara Labuh Geothermal Power Plant is expected to play a vital role in supporting Indonesia's energy security by diversifying the energy supply and reducing dependence on imported fossil fuels. This aligns with the national government's vision of achieving energy independence and sustainability.
Supreme Energy's commitment to geothermal energy is further demonstrated by its collaboration with various stakeholders, including government agencies, local communities, and international partners. By fostering these partnerships, Supreme Energy aims to enhance the development of geothermal resources in Indonesia and promote best practices in environmental management and community engagement.
The company is also exploring opportunities to expand its geothermal portfolio beyond West Sumatra. Supreme Energy is actively assessing additional geothermal sites across Indonesia to identify potential projects that can contribute to the country's renewable energy targets.
As the global energy landscape continues to evolve, Indonesia's focus on geothermal energy represents a significant step towards a more sustainable future. The Muara Labuh Geothermal Power Plant is poised to be a cornerstone of this transition, providing clean, renewable energy while fostering economic development and community well-being.
In summary, Supreme Energy's development of its second geothermal plant in West Sumatra underscores the company's commitment to advancing renewable energy in Indonesia. With the Muara Labuh Geothermal Power Plant, Supreme Energy aims to enhance the country's energy security, contribute to its renewable energy goals, and support local communities through job creation and sustainable practices.
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