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Jakarta Post

Geothermal firm awaiting govt contract assurance

  • Rangga D. Fadillah

    The Jakarta Post

Jakarta   /   Fri, August 19 2011   /  08:00 am

State electricity utility PT PLN says it will urge Supreme Energy, the operator of the Gunung Rajabasa and Muara Laboh geothermal fields in Lampung and West Sumatra, to sign the delayed power purchase agreements for the two fields.

PLN president director Dahlan Iskan reported that his company had scheduled for the agreements to be finalized in July, but Supreme Energy declined to sign them because it was waiting for assurance from the government of PLN’s ability to pay for the power and fund the projects in the future.

“[Supreme Energy] is still waiting for clarification of the government’s guarantee for their projects. We actually planned to sign it coinciding with the launch of the Master Plan for the Acceleration and Expansion of Indonesia’s Economic Development [MP3EI] recently,” he told reporters on Thursday.

The 2011 ministerial decree on the guarant...