Bank Indonesia Policy Mix

Government Support for New and Renewable Energy PISP Fund & Government Guarantee for Electricity Projects To promote new and renewable energy development, the Government provides fiscal support in the form of government guarantee (credit guarantee and business viability guarantee) and Geothermal Fund Facility (PISP Fund). Several guarantees has been provided to renewable energy power plant construction and Power Purchase Agreement (PPA). PISP funds (and its co-finance), can be used for geothermal development in the exploration, exploitation, and development stages, and are eligible for Government Drilling, SOE Drilling/Public Window, and Private Drilling/Private Window. PISP Fund Exploration Financing Facilities PISP Co-financing (MOF Regulation 62/2017) Goal Fund Manager Total Funds Fund Distribution Main feature Financing exploration, exploitation and PLTP PT Sarana Multi Infrastruktur (SMI) IDR 3,1 Trillion (revolving fund) Loans, capital injections, and data provisions ■ De-risking facility for exploration stage ■ Minister of Finance's Assignment Letter (SK) to PT SMI to finance exploration project. Governance ■ Monitoring and supervision by The Joint Committee between MoF and MEMR. Engage academic experts to receive technical knowledge. (Collaboration with international funding) Geothermal Energy Upstream Development Project (GEUDP) - World Bank Geothermal Resource Risk Mitigation (GREM) CTF grant (USD49million) and GEF grant (USD6,25million). Aims to support the government's geothermal data and information provisioning facility (Government Drilling). PT SMI as fund manager & PT GDE as implementing agency. Total USD655 million (loan, grant, and PISP co-finance) Aims to support exploration on the SOE Drilling & Private Drilling scheme. Source: Ministry of Finance 121

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