PT Sarana Multi Inftastruktur (PT SMI) has signed an agreement with Ormat Geothermal Indonesia to explore the potential financing options for geothermal exploration in Wapsalit, Maluku, and Toka Tindung, North Sulawesi.
The development of renewable energy forms part of President Prabowo’s Government Goals: to realise a self-sufficient economy by strengthening strategic sectors such as energy, food and national industry.
Reynaldi Hermansjah, President Director of PT SMI, stated, “Through sustainable infrastructure financing, we are committed to accelerating the transition to renewable energy, a key initiative in the government's Government Goal. In addition to supporting environmental sustainability, this transition also creates new jobs and improves people's welfare. With this vision, Indonesia is directed towards becoming a developed nation that is energy independent and environmentally friendly.”
Initial funding options are being explored through the Geothermal Resource Risk Mitigation Program (GREM) facility, in collaboration with the World Bank. The GREM facility is an exploration financing facility with a de-risking feature, where the company and the World Bank provide financing during the riskiest phase of a geothermal project.
Ormat will support the effort to build a strong renewable energy ecosystem in Indonesia.
“As a key player in global geothermal development, we believe that Indonesia has tremendous potential to become a leader in renewable energy in Southeast Asia. Through our collaboration with PT SMI, we fully support the government's agenda to encourage green investment and the development of environmentally friendly energy infrastructure through our technology and capabilities," said Dion Murdiono, President Director of Ormat Geothermal Indonesia.