Investor Presentaiton

RENEWABLES FINANCE IPPs require government support Most IPPs surveyed believed that renewables development can be accelerated if the government steps in and takes measures to improve the investment climate in the sector. IPPS perceived that the government has been showing its willingness to develop renewables but at no cost. There are at least three areas that can help improve the investment climate according to IPPS surveyed. First, incentives for renewables to lower interest rates (less than 10%), an increase in renewables tariffs, and the provision of blended financing. Second, government support to lower project risks by removing the BOOT scheme and fair risk allocation. Third, good governance that ensures sound business process and certainty in regulatory framework and PPA clauses (tariffs and currency). Government Support Incentives Project Risks Governance Lower interest rates Increased tariffs Blended financing Removal of BOOT scheme Fair risk allocation Sound business process Certainty in regulatory framework Certainty in PPA clauses IESR (Institute for Essential Services Reform) | www.iesr.or.id 26

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