Rantau Dedap Geothermal Loan Agreement Deal (Photo Credit : Supreme Energy Rantau Dedap)

JAKARTA (TheInsiderStories) – Local firm PT Supreme Energy Rantau Dedap (SERD) has signed a loan agreement worth US$540 million from Japan Bank for International Cooperation, Asian Development Bank and a number of international commercial banks to finance the Rantau Dedap geothermal power plant in South Sumatera.

SERD is joint venture company of ENGIE of France, Japan’s Marubeni Corp., Tohoku Electric Power and local firm PT Supreme Energy. Rantau Dedap geothermal project is located in Muara Enim, Lahat and Pagar Alam in South Sumatera.

Supreme Energy said in a statement that the loan agreement was signed on Friday (23/3), paving the way for the joint venture company to move forwad with the development of the Rantau Dedap geothermal project.

The commercial banks that also provided the financing are Mizuho Bank Ltd., Bank of Tokyo-Mitsubishi UFJ, and Sumitomo Mitsui Banking Corporation, while Nippon Export and Investment Insurance acted as guarantor.

The company said the first phase of the power plant, with a capacity of 98.4 megawatts (MW_ is targeted to begin commercial operation in 2020.

To realize the project, the company has appointed PT Rekayasa Industri and Fuji Electric Co., Ltd to become the EPC (engineering, procurement, and construction) for the project.

SERD President Director Supramu Santosa said Rantau Dedap is the second geothermal project of Supreme Energy after Muara Laboh in South Solok, West Sumatera.

“This is a result of hard work and strong commitment of Supreme Energy to develop geothermal energy in Indonesia, which is an important part of the government of Indonesia’s drive to increase the share of renewable energy in the country’s energy mix,” he said.

The company has already signed power purchase agreement (PPA) with PT Perusahaan Listrik Negara in November 2017. Based on the deal, the state electricity company will buy electricity from the power plant at a tariff of US$11.76 cent per kWh.

Written by Roffie Kurniawan, email: roffien@theinsiderstories.com