PT SMI, GGGI formalize partnership in developing RE project in Indonesia

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ptsmi-perseroThe Indonesian state owned enterprise, PT Sarana Multi Infrastruktur (Persero) (PT SMI) and the Global Green Growth Institute (GGGI) signed a Memorandum of Understanding (MoU) on September 7, 2016 at Jeju International Convention Center. The signing took place during the Asian Regional Policy Dialogue (ARPD) session, one of the major events of the Global Green Growth Week 2016 (#GGGWeek2016).

PT SMI, an infrastructure financing company owned by the Government of Indonesia through the Ministry of Finance, has recently started developing renewable energy (RE) projects in Indonesia, and this MoU with GGGI represents their first collaboration in this objective. This partnership will serve as a catalyst in accelerating infrastructure development in Indonesia and help the Government to achieve its renewable energy ambitions.

GGGI will support PT SMI by providing technical expertise in evaluating projects in its development pipeline. PT SMI’s leading position in Indonesian infrastructure development will benefit from GGGI’s experience in helping to commercialize utility scale renewable energy projects across 25 developing country markets. As a result of this MoU, GGGI and PT SMI will now jointly identify and evaluate projects that are already in the PT SMI project pipeline. To initiate the much-needed boost in private sector investment, GGGI will provide support in developing these projects towards bankability that will demonstrate success in the renewable energy.

The Government of Indonesia is committed to increasing the percentage of new and renewable energy in the country’s energy mix. This partnership lays the foundation for providing GGGI’s services in Indonesia and will result in projects that will support the government’s greenhouse gas emission reduction targets as well as its universal electrification goals for improving access to electricity in the most remote areas of the Indonesian archipelago. A focus on social inclusion will be the foundation of each project, resulting in a broader impact for all populations, particularly those that are often underserved. This partnership will be instrumental in helping Indonesia contribute towards meeting the Sustainable Development Goals (SDGs). There are many projects in the pipeline that will be developed and there will be more announcements as this partnership continues.

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