2022 State Budget: Fiscal Policy and Structural Reform
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
(MOF Regulation 62/2017)
Goal
Fund Manager
Total Funds
Fund Distribution
Financing exploration, exploitation and PLTP
PT Sarana Multi Infrastruktur (SMI)
IDR 3,1 Trillion (revolving fund)
Loans, capital injections, and data provisions
Main feature
☐
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.
PISP Co-financing
(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
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