FP083
Indonesia Geothermal Resource Risk Mitigation Project
Indonesia Geothermal Resource Risk Mitigation Project
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.
Project timeline
Pipeline
28 Feb 2018 • 235 days
Funding proposal received
28 Feb 2018
Cleared by GCF Secretariat
14 Aug 2018
Cleared by iTAP
26 Sep 2018
Approved
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 • 2,032 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 • 1,622 days to go
-
Financing
- Private sector
- Public sector
-
Size
- Micro
- Small
- Medium
- Large
GCF financing100% disbursed
| Instrument | Amount |
|---|---|
| Grant | USD 90,000,000 |
| Loan | USD 7,500,000 |
| Grant | USD 2,500,000 |
| Total GCF Financing |
|---|
| USD 100,000,000 |
Co-financing
| Co-financer | Instrument | Amount |
|---|---|---|
| Co-Financing | Loan | USD 82,000,000 |
| Co-Financing | Equity | USD 47,500,000 |
| Co-Financing | Grant | USD 32,000,000 |
| Co-Financing | Grant | USD 2,500,000 |
| Co-Financing | Grant | USD 1,250,000 |
| Co-Financing | Grant | USD 14,000,000 |
| Total Co-Financing |
|---|
| USD 179,250,000 |
GCF Contacts
General media inquiries
GCF CommunicationsSend e-mail
Request for information
GCF Information DisclosureRequest information about this project
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
Entity
International Bank for Reconstruction and Development and International Development Association
Fund Manager, Global Climate Funds
More contacts
National Designated Authority
Directorate General of Financial Sector Stability and Development, Ministry of Finance.
Director General of Financial Sector Stability and Development
Radius Prawiro Building, 6th Floor, Jalan Dr. Wahidin Raya No. 1, Central Jakarta
Director of Multilateral Cooperation and Sustainable Finance, Directorate General of Financial Sector Stability and Development (Head of Indonesia NDA GCF Secretariat)
Radius Prawiro Building, 6th Floor, Jalan Dr. Wahidin Raya No. 1, Jakarta, Indonesia
Documents
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.