Indonesia's geothermal plants billow with foreign investments

Japan's Inpex, Singapore's Start Energy join rush to develop renewable energy source

The Muara Laboh geothermal plant, where Inpex is planning to double production through expansions. (Photo courtesy of Supreme Energy Muara Laboh)

RYO MUKANO, KOYA JIBIKI and YUICHI SHIGA, Nikkei staff writers

January 25, 2023 11:41 JST

TOKYO/JAKARTA/MANILA -- Geothermal projects are taking off in Indonesia, drawing investments from Japan's Inpex, Singapore's Start Energy and other players, as the Southeast Asian country pushes the renewable energy source in a quest for carbon neutrality.

The Inpex-backed Muara Laboh geothermal power plant is a five-hour drive from Minangkabau International Airport in West Sumatra. A green power station billowing steam can be seen on a plateau at an altitude of 1,400 meters. There is a constant grumble from towers cooling steam that emits from wells pumping hot underground water.