Jeju, Republic of Korea September 7, 2016
JEJU ISLAND, REPUBLIC OF KOREA — The 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 7th at 17:45 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 is an infrastructure financing company that is owned by the Government of Indonesia through the Ministry of Finance. PT SMI has recently started developing renewable energy 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.
GGGI’s Director-General, Yvo de Boer, said, “PT SMI and GGGI are working together to reduce risks for investors from the private sector and to shape a climate that is conducive to green growth projects. Our goal is to have multiple renewable energy projects from the pipeline at a financial close over the next two to three years.” He also mentioned that GGGI is committed to working in partnership with esteemed institutions such as PT SMI to provide development and design support for renewable energy projects. Darwin T Djajawinata, Director of PT SMI said, “One of the main purposes of PT SMI is to support the government’s infrastructure development agenda through partnerships with private and multilateral financial institutions, which include promoting and developing renewable energy and energy efficiency. PT SMI is enthusiastic about working hand in hand with GGGI in accelerating the development of renewable energy project in Indonesia.”
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.
About the Global Green Growth Institute (GGGI)
Based in Seoul, GGGI is an intergovernmental organization founded to support and promote green growth. The organization partners with countries to help them build economies that grow strongly, are more efficient and sustainable in the use of natural resources, less carbon intensive, and more resilient to climate change. GGGI works with countries around the world, building their capacity and working collaboratively on green growth policies that can impact the lives of millions. To learn more about GGGI, see http://www.gggi.org and visit us on Facebook and Twitter.
About PT Sarana Multi Infrastruktur (Persero) (PT SMI)
PT SMI is an infrastructure financing company based in Jakarta, Indonesia, which was established in 2009, as a State Owned Enterprises (SOE) of the Government of Indonesia through the Minister of Finance Republic of Indonesia. PT SMI plays active role in facilitating infrastructure financing as well as preparing project and serving advisory for infrastructure projects in Indonesia. PT SMI carries the duty of supporting the Government’s infrastructure development agenda through partnerships with private and/or multilateral financial institutions in Public-Private Partnership (PPP) projects. To learn more about PT SMI, visit https://www.ptsmi.co.id.