US invests $126m for Indonesia geothermal plant development

This Phase I Ijen Geothermal will have a 31 MW capacity.

The US International Development Finance Corporation (DFC) committed up to $126m in investment in Indonesian power firm PT Medco Cahaya Geothermal to support its power plant development.

In a statement, DFC said the amount will boost the development and operations of the Phase I power plant Ijen Geothermal with a net generation of 31 megawatts. 

“The Ijen Geothermal power plant is a key part of Indonesia’s ambitious strategy for an energy transition,” said DFC Deputy CEO Nisha Biswal.

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“This project also reinforces our shared goals through the U.S.-Indonesia Comprehensive Strategic Partnership, which will enhance economic and energy security for both of our countries,” Biswal added.

The project will raise the renewable power generation in East Java and contribute low-carbon baseload to the Java-Bali grid which is the largest power system in the country.