On [Tue, 28 March 2023], the MENTARI, UK-Indonesia Low Carbon Energy Partnership and PT Brantas Energi will sign an agreement to support three of PT Brantas Energi’s new hydropower renewable energy projects. These innovative schemes will have a total capacity of 7 MW and will contribute to Indonesia’s efforts to accelerate low carbon energy. The blended finance scheme aims to accelerate Indonesia’s energy transition and promote sustainable economic growth, universal and inclusive energy access, and new employment opportunities. Of the total capital expenditure of IDR 210 billion, the UK contribution through MENTARI is worth IDR 21 billion. This grant component improves the project’s financial viability and unlocks debt financing from PT SMI by increasing the debt service coverage ratio (DSCR). PT SMI will provide the loan, monitor the progress, and work with MENTARI and PT Brantas Energi to ensure sustainability throughout the engineering, procurement, and construction phases until they are operational.
The signing ceremony will be attended by Amanda McLoughlin, British Embassy’s Development Director, and from the MENTARI Programme by Julio Retana as Team Leader; PT Sarana Multi Infrastruktur (Persero) (PT SMI) by Sylvi Juniarty Gani, Financing and Investment Director; and Firmansyah Ibnu Haryoso the, the President Director of PT Brantas Energi.
The three new hydropower plants in Pandanduri, Lombok; Titab, Bali; and Batang Hari in West Sumatera, will use existing dams currently utilised for agricultural irrigation from the Ministry of Housing and Public Works. The new projects will enable additional benefits from these dams by allowing them to generate electricity from excess water flows. Due to the large number of water dams across Indonesia, the application of this technology has high potential for replication without additional environmental and social impacts.
Amanda McLoughlin, British Embassy’s Development Director British Embassy Jakarta said: “The joint investment partnership with PT SMI was only signed last September and now we are seeing it bearing fruit. It is my great pleasure to see progress is happening and that the UK and MENTARI can increase its participation in Indonesia’s renewable energy acceleration journey by investing in these three hydropower prohects. I hope that this blended financing mechanism can be an innovation that helps to unlock more investment in the renewable energy sector in Indonesia”.
Sylvi Juniarty Gani, Financing and Investment Director PT SMI stated: “As these projects will be our first collaboration with MENTARI, we hope that this structure can also be adopted by other renewable energy projects, of course with the collaboration with our financing partners so that the quality of projects and also monitoring of projects implementation can be accelerated with a higher standard”.
Firmasyah Ibnu Haryoso, President Director PT Brantas Energi said: “The potential for Renewable Energy-based power plants are very large in Indonesia, one of which is by utilising exisiting dams as Brantas Energi does on Pandan Duri Dam, Titab Dam, and Batang Hari Dam. In current conditions, the investment credit loans rate is relatively higher than the previous year due to global and regional economic issues, making it quite burdensome for investors. BRANTAS ENERGI as an investor in Renewable Energy-based power plants is greately helped by the grants through Mentari Programme. BRANTAS ENERGI hopes that the Mentari Programme can continue so that it can help us financially in investing and developing sustainable Renewable Energy-based power plants in Indonesia.”
Note to Editors:
MENTARI (Menuju Transisi Energi Rendah Karbon Indonesia) is a partnership between the governments of Indonesia and the United Kingdom set up to promote the uptake of low-carbon energy, supporting Indonesia’s just energy transition.
The programme started in 2020 and is led by the British Embassy Jakarta and Indonesia’s Ministry of Energy and Mineral Resources. It is implemented by a consortium led by Palladium International and composed of Castlerock Consulting, Yayasan Humanis dan Inovasi Sosial (Hivos), and Economic Consulting Associates (ECA).
For more information on MENTARI programme, please visit www.mentari.info
About PT SMI
PT Sarana Multi Infrastruktur (Persero) was established on February 26th, 2009 as a State-Owned Enterprise under the coordination of the Ministry of Finance in the form of a Non-Bank Financial Institution (LKBB), with a role and mandate as a catalyst for the acceleration of national development.
PT SMI has various functions and unique products/features to support the acceleration of infrastructure development which not only functions as an infrastructure financing but also as an enabler through the implementation of a Public Private Partnership (PPP) scheme which includes various financial institutions, both private and multilateral. PT SMI actively supports the PPP implementation and encourages the acceleration of infrastructure development in the regions through regional loan products.
PT SMI has three business pillars, namely (1) Funding and Investment, financing for infrastructure projects, (2) Consultancy Services, solutions to the needs of professionals and experts in the infrastructure sector, and (3) Project Development, assistance for the Person in Charge of Cooperation Projects (PJPK) in preparing infrastructure projects.
For more information on PT SMI, please visit https://ptsmi.co.id/
About PT Brantas Energi
PT Brantas Energi was established on December 12, 2011 as a business diversification from PT Brantas Abipraya (Persero). The company’s main business is providing electricity through investment activities and the construction focuses on renewable energy Power Plants. The company has 4 Units of operating Mini Hydro Power Plants (PLTM) and 1 Unit of operating Solar Power Plants (PLTS) with total capacity of 29,0 MW. PT Brantas Energi also develop other Power Plants with a total capacity of 300 MW spread throughout Indonesia. Based on the motto “Eco Responsible”, PT Brantas Energi always underlies all activities by focusing on environmental conservation first and foremost.
For more information on PT Brantas Energi, https://brantas-energi.co.id
For further information, please contact:
- British Embassy Head of Media and Communications
- MENTARI Team Leader – Julio Retana – email@example.com +62 82110049187
- PT SMI – Corporate Secretary – Ramona Harimurti – Ramona@ptsmi.co.id
- PT Brantas Energi – Corporate Secretary – Dynna Tiara Kamil – firstname.lastname@example.org