The two projects, called Muara Laboh and Rajabasa, are planned to be built on Sumatra island to deliver power to the region.
Both projects are included in the Indonesian Government’s second fast-track programme, of which around 4,500MW should come from geothermal sources.
Signing of the PPAs is a necessary pre-condition to commencing exploratory drilling for geothermal resource.
Following confirmation of the resource, project financing and engineering, procurement and construction arrangements will be negotiated.
Subject to the timing of these, both projects are expected to start operation in 2016.
IPR-GDF SUEZ Asia has a 35% interest in the projects.
