PT Sarana Multi Infrastruktur and PT Ormat Geothermal Indonesia Explore Potential Financing for Geothermal Energy Exploration

Jakarta, September 17, 2025 – PT Sarana Multi Infrastruktur (Persero) continues to demonstrate its commitment to accelerating the development of geothermal energy in Indonesia. The Company and PT Ormat Geothermal Indonesia have agreed to explore the potential for financing geothermal exploration in Wapsalit, Maluku, and Toka Tindung, North Sulawesi. This signing was one of the agendas held on the sidelines of the Indonesia International Geothermal Conference and Exhibition (IIGCE) 2025, on Wednesday, September 17, 2025, at the Jakarta International Convention Center. Witnessed directly by the Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, the signing of the Memorandum of Understanding (MoU) was carried out by the President Director of PT Sarana Multi Infrastruktur (Persero), Reynaldi Hermansjah, and the President Director of PT Ormat, Dion Murdiono. In addition to being witnessed by the Minister of Energy and Mineral Resources, the MoU signing was also witnessed by Sylvi J. Gani, Director of Financing and Investment at PT Sarana Multi Infrastruktur (Persero), and Ofer Ben Yosef, EVP of Business Development and Energy Storage at Ormat Technologies.

The development of renewable energy is part of President Prabowo's Asta Cita (Government Goal), specifically the fourth goal, which is to realize a self-sufficient economy by strengthening strategic sectors such as energy, food, and national industry. We fully support the government's efforts to achieve energy independence by developing clean energy as a strategic priority. "Through sustainable infrastructure financing, we are committed to accelerating the transition to renewable energy, a key initiative in the government's Asta Cita (Government Goal). In addition to supporting environmental sustainability, this transition also creates new jobs and improves people's welfare. With this vision, Indonesia is directed towards becoming a developed nation that is energy independent and environmentally friendly," said Reynaldi Hermansjah, President Director of PT Sarana Multi Infrastruktur (Persero).

Initial funding options for this exploration phase are being explored through the Geothermal Resource Risk Mitigation Program (GREM) facility, in collaboration with the World Bank. The GREM facility is an exploration financing facility with a de-risking feature, where the Company and the World Bank provide financing during the riskiest phase of a geothermal project. The GREM scheme allows for risk-sharing between developers and financing institutions in the face of exploration and political risks inherent in exploration activities. The Company is the only financing institution that provides integrated financing from the initial survey, exploration, and development/expansion stages.

Meanwhile, PT Ormat is also ready to support efforts to build a strong renewable energy ecosystem in Indonesia. PT Ormat Geothermal Indonesia is part of Ormat Technologies, Inc., a US-based company with over 60 years of experience in renewable energy development. "As a key player in global geothermal development, we believe that Indonesia has tremendous potential to become a leader in renewable energy in Southeast Asia. Through our collaboration with PT Sarana Multi Infrastruktur (Persero), we fully support the government's agenda to encourage green investment and the development of environmentally friendly energy infrastructure through our technology and capabilities," said Dion Murdiono, President Director of PT Ormat.

This collaboration is expected to set an example of geothermal exploration risk mitigation, which can be achieved through collaboration between the government, financial institutions, donors, and business entities. Previously, one of the projects funded by PT Sarana Multi Infrastruktur (Persero), the Ijen Geothermal Power Plant (PLTP) in Banyuwangi, was inaugurated by President Prabowo Subianto last June. PLTP Ijen is a national strategic energy project, supporting the government's target of increasing the New and Renewable Energy (NRE) mix from 9% to 23% by 2025, in accordance with the National Medium-Term Development Plan (RPJMN).

As of July 2025, we have disbursed Rp25.87 trillion in committed financing, with Rp15.06 trillion outstanding. The company has calculated 139 renewable energy projects and one Light Rail Transit project, generating avoided greenhouse gas emissions of 4.0 million tons of CO2-equivalent and potential Carbon Credit Equivalent of USD14 million. Since 2018, we have also implemented a moratorium on financing for coal-fired power plants and are focusing on supporting the development of new and renewable energy power plants.

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About PT Sarana Multi Infrastruktur (Persero)

PT Sarana Multi Infrastruktur (Persero) ("PT SMI"), established on February 26, 2009, is a State-Owned Enterprise under the coordination of the Ministry of Finance, in the form of a Non-Bank Financial Institution (LKBB). PT SMI plays a role and has a mandate as an agent of sustainable development. PT SMI has three business pillars: Corporate Financing, Public Financing, and Advisory & Project Development.

PT SMI has various unique functions and products/features to support the acceleration of infrastructure development. It not only serves as an infrastructure financing provider but also as an enabler through the implementation of Public-Private Partnership (PPP) schemes involving various private and multilateral financial institutions. PT SMI actively supports the implementation of PPP schemes and encourages the acceleration of infrastructure development in the regions through regional loan products.

For more information, contact:

Ramona Harimurti
Head of Corporate Secretary Division
PT Sarana Multi Infrastruktur (Persero)
Tel: +6221 8082 5288
Fax.: +6221 8082 5258
Email: corsec@ptsmi.co.id
Website: www.ptsmi.co.id