Republic of Indonesia

                  Indonesia Geothermal Resource Risk Mitigation Project (GREM)

                                       Thursday, September 26, 2019

                                                Chair Summary*

Executive Directors approved the Indonesia Geothermal Resource Risk Mitigation Project under
the Multi-phase Programmatic Approach, with an overall IBRD envelope of up to US$325 million,
including, for the First Phase, an IBRD Loan in the amount of US$150 million and a Clean
Technology Fund (CTF) Loan of US$40 million to Indonesia; a CTF Contingent Recovery Grant
of US$32.5 million and a CTF Grant of US$2.5 million to PT Sarana Multi Infrastruktur (Persero)
(PT SMI). The Minutes will reflect that Ms. Nordquist wished to be recorded as abstaining.

Directors expressed support for this highly innovative project and underscored its role in increasing
the share of renewable energy in Indonesia’s energy mix, and helping Indonesia reduce greenhouse
gas emissions to meet the country’s climate mitigation goals. They encouraged Management to
use lessons learned to develop best practices that can be applied to other countries.

Directors highlighted the importance of engaging the private sector and coordinating closely with
IFC and MIGA, in the early stages, to create markets and provide better access to energy. Directors
drew attention to the Government of Indonesia’s energy reform agenda and urged the Bank to
continue its assistance to improve financial sustainability of the sector and support renewable
energy investments and necessary regulatory reform. Directors welcomed the Bank’s efforts to
support PT-SMI project management, including those on environment and social safeguards and
on citizen engagement.




*
    This summary is not an approved record.