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.

Total project value

 

Tonnes of emissions avoided

 

Theme

Mitigation

Result areas

Project timeline

Pipeline

28 Feb 2018 - 235 days

Funding proposal received

28 Feb 2018

Cleared by iTAP

26 Sep 2018

Approved

20 Oct 2018 - 495 days so far

Approved by GCF Board

20 Oct 2018

Legal opinion on AE's Internal Approval

27 Sep 2019

Under implementation

Completed

28 Feb 2029

One region

  • Asia-Pacific

One country

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

GCF financing

InstrumentAmount
GrantUSD 90,000,000
LoanUSD 7,500,000
GrantUSD 2,500,000

Cofinancing

CofinancerInstrumentAmount
Co-FinancingEquityUSD 60,000,000
Co-FinancingLoanUSD 25,000,000
Co-FinancingLoanUSD 225,000,000

GCF Project Team

General media inquiries

GCF Communications
Phone +82 32 458 7751
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Project complaints and grievances

GCF Independent Redress Mechanism (IRM)
Phone +82 32 458 6157
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Integrity issues

GCF Independent Integrity Unity (IIU)
Phone +82 32 458 6155
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Accredited Entity

National Designated Authority

Indonesia

Fiscal Policy Agency, Ministry of Finance

Arif Baharudin
Acting Chairman of Fiscal Policy Agency
R.M Notohamiprodjo Building 2nd Floor, Jalan Dr. Wahidin Raya No. 1, Jakarta, Indonesia
Adi Budiarso
Director of Center for Climate Finance and Multilateral Policy/Head of the NDA Secretariat
Center for Climate Finance and Multilateral Policy, Fiscal Policy Agency, Ministry of Finance, R.M. Notohamiprodjo Building 5th Floor, Jalan Dr. Wahidin Raya No. 1, Jakarta, Indonesia