Indonesia Geothermal Resource Risk Mitigation Project

Indonesia Geothermal Resource Risk Mitigation Project

  • Status Under implementation
  • Date approved 20 Oct 2018 at B.21
  • Est. completion 15 May 2030
  • ESS Category Intermediation 1

Harnessing geothermal energy development to help reduce greenhouse gas emissions while meeting electrification needs in Indonesia.

As an emerging economy with a goal to reach 99.7 percent national electrification by 2025, Indonesia’s energy demands are increasing. The country has the world’s largest estimated potential for geothermal energy resources, but its development has been limited due to risky and expensive early-stage development costs. These barriers are further exacerbated by the geothermal tariff framework which needs to be competitive to enable private sector investment.

This project aims to help the Government of Indonesia scale up geothermal energy development by introducing a well-designed upstream risk mitigation mechanism and by promoting a conducive regulatory environment. Under this project, both public and private sector geothermal developers will have access to funds to help mitigate early stage development risks. The geothermal resource risk mitigation facility will provide contingent financing and soft loans for resource confirmation drilling.

The project has an estimated lifespan of 10 years.

Total project value


Tonnes of emissions avoided




Result areas

Project timeline


28 Feb 2018 - 235 days

Funding proposal received

28 Feb 2018

Cleared by iTAP

26 Sep 2018


20 Oct 2018 - 574 days

Approved by GCF Board

20 Oct 2018

Legal opinion on AE's Internal Approval

27 Sep 2019

FAA executed

27 Apr 2020

Under implementation

15 May 2020 - 1,477 days so far

FAA effective

15 May 2020

Disbursement - USD 7,500,000

13 Jan 2021

Disbursement - USD 90,000,000

13 Jan 2021

Disbursement - USD 2,500,000

13 Jan 2021

To be completed

15 May 2030 - 2,176 days to go

One region

  • Asia-Pacific

One country

  • Financing
    • Private sector
    • Public sector
  • Size
    • Micro
    • Small
    • Medium
    • Large

GCF financing100% disbursed

GrantUSD 90,000,000
LoanUSD 7,500,000
GrantUSD 2,500,000
Total GCF Financing
USD 100,000,000


Co-FinancingLoanUSD 225,000,000
Co-FinancingEquityUSD 60,000,000
Co-FinancingLoanUSD 25,000,000
Total Co-Financing
USD 310,000,000

GCF Contacts

General media inquiries

GCF Communications
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Request for information

GCF Information Disclosure
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Project complaints and grievances

GCF Independent Redress Mechanism (IRM)
Phone +82 32 458 6186 (KST)
File a complaint

Integrity issues

GCF Independent Integrity Unity (IIU)
Phone +82 32 458 6714 (KST)
Send e-mail

Accredited Entity

International Bank for Reconstruction and Development and International Development Association
Mr. Zhihong Zhang

Senior Carbon Finance Specialist
The World Bank 1818 H Street, NW MSN MC3-309 Washington DC 20433 USA, Washington, United States
More contacts

National Designated Authority

Fiscal Policy Agency, Ministry of Finance
Mr. Febrio Kacaribu Primary
Chairman of Fiscal Policy Agency, Ministry of Finance
R.M. Notohamiprodjo Building 2nd Floor, Jalan Dr. Wahidin Raya No. 1, Jakarta, Indonesia
Phone +62 21 3441 484
Mr. Boby Hernawan Secondary
Director of Center for Climate Finance and Multilateral Policy/Head of the NDA Secretariat
R.M. Notohamiprodjo Building 5th Floor, Jalan Dr. Wahidin Raya No. 1, Jakarta, Indonesia
Phone +62 21 3483 1678

News + Stories

GCF supports Indonesia's energy transition with de-risking geothermal development

24 Jan 2019 / GCF's Indonesia geothermal project is at the heart of Indonesia's energy transition drive and promises to improve the share of renewables which currently accounts for 12.5 percent of the country's electricity generation.