Under the contract, Alstom will design, supply, install and commission the entire power plant by the end of 2016.
In the last few years, the Indonesian authority has signed numerous geothermal-related contracts as part of its efforts to reduce overall greenhouse gas emissions and leverage on the huge geothermal reserves to boost the power industry.
Alstom Renewable Steam Plants vice president in charge Steven Moss said: "We are delighted to play a key role in helping Indonesia achieve its energy goals.
"This installation reinforces Alstom’s continued commitment to the geothermal markets and the importance of this renewable fuel source."
Indonesia holds the largest potential geothermal source in the world, and is estimated to be approximately 30,000MW.
PT Pertamina Geothermal Energy CEO Rony Gunawan said: "The competitiveness of Alstom’s offer including quality, environment, health and safety, was key in the awarding of the contract. We are looking forward Alstom improving capability and effectiveness to manage the project."
