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 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 - 1,691 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 - 1,962 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 225,000,000 |
| Co-Financing | Equity | USD 60,000,000 |
| Co-Financing | Loan | USD 25,000,000 |
| Total Co-Financing |
|---|
| USD 310,000,000 |
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
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
Chairman of Fiscal Policy Agency, Ministry of Finance
R.M. Notohamiprodjo Building 2nd Floor, Jalan Dr. Wahidin Raya No. 1, Jakarta, Indonesia
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
Documents
| Title | Type | Date |
|---|---|---|
| 2023 Annual Performance Report for FP083: Indonesia Geothermal Resource Risk Mitigation Project | Annual Performance Report | 17 Feb 2024 |
| 2022 Annual Performance Report for FP083: Indonesia Geothermal Resource Risk Mitigation Project | Annual Performance Report | 18 Feb 2023 |
| 2020 Annual Performance Report for FP083: Indonesia Geothermal Resource Risk Mitigation Project | Annual Performance Report | 21 Aug 2021 |
| Gender assessment for FP083: Indonesia Geothermal Resource Risk Mitigation Project | Gender assessment | 10 Jan 2019 |
| Gender action plan for FP083: Indonesia Geothermal Resource Risk Mitigation Project | Gender action plan | 10 Jan 2019 |
| Indonesia geothermal resource risk mitigation project | Approved funding proposal | 28 Nov 2018 |
| Environmental and social safeguards (ESS) report for FP083: Indonesia Geothermal Resource Risk Mitigation Project | Environmental and Social Safeguards report | 28 Sep 2018 |
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.