UK Climate Minister Reviews Pandanduri Micro Hydroelectric Power Plant, Appreciates Collaboration with PT SMI

West Nusa Tenggara, April 18, 2025 – PT Sarana Multi Infrastruktur (“Persero”) (“PT SMI”) has once again received appreciation for its commitment to assisting in climate change mitigation efforts. This time, the praise came from the British Minister for Climate, Kerry McCarthy, who delivered it while reviewing the construction of the Pandanduri Micro Hydro Power Plant (PLTMH), in East Lombok Regency, West Nusa Tenggara, on Friday, April 18, 2025. The Pandanduri PLTMH was built through collaboration between various parties, including with financial support from PT SMI. In addition to Minister Kerry, a number of officials were also present, including the Governor of West Nusa Tenggara, Lalu Muhammad Iqbal, President Director of PT SMI, Reynaldi Hermansjah, President Director of PT Brantas Energi, Satiyobudi Santoso, Head of the Nusa Tenggara 1 River Basin Center, Ministry of Public Works, Eka Nugraha Abdi, and General Manager of the West Nusa Tenggara Region of PT PLN, Sudjarwo. In addition, the officials above also signed an inscription, as a symbol of collaboration between the Indonesia-UK Low Carbon Energy Partnership (MENTARI), with PT SMI, PT Brantas Energi and the West Nusa Tenggara Provincial Government.

In his remarks, the UK Minister for Climate, Kerry McCarthy was pleased with the progress of the Pandanduri PLTMH development, which was carried out thanks to the support of all parties, including PT SMI. "I am pleased that this project can finally realize our dreams of providing clean energy. The UK Government has the same ideas, vision and philosophy as the Indonesian Government on how to address the impacts of climate change. I hope that this kind of cooperation will continue so that we can together create a greener earth, for current and future generations," said Kerry.

The development of the Pandanduri PLTMH reaffirms PT SMI's role in helping to provide clean energy, which is more environmentally friendly. "We greatly appreciate the support of the British Government in helping to drive sustainable development in Indonesia. Today we can witness firsthand how financing cooperation can be mobilized effectively, through innovative instruments. PT SMI through the various platforms we have, such as SDG Indonesia One and ETM Country Platform, is always ready to partner with anyone, to find various solutions that can accelerate the energy transition and contribute to the Sustainable Development Goals (SDG)," said President Director of PT SMI, Reynaldi Hermansjah.

On March 28, 2023, the MENTARI Program together with PT Brantas Energi, signed a cooperation agreement to support three new renewable energy hydropower projects developed by PT Brantas Energi in Bali, West Nusa Tenggara, and West Sumatra. These three innovative projects have a total capacity of 7 MW.

The projects have a total investment value of IDR 210 billion and received a Viability Gap Fund (VGF) grant of IDR 21 billion.

Specifically for the Pandanduri PLTMH, the financing disbursed was IDR 9.6 billion with a VGF grant of IDR 2.6 billion. The Pandanduri PLTMH will be able to generate 0.58 Megawatts when operational. As of March 2025, the construction progress of the Pandanduri PLTMH has reached 97%. This project is a real example of technical innovation and the potential for developing small-scale renewable energy in Indonesia. The project utilizes an existing state-owned dam, the Ministry of Public Works’ Pandanduri Dam, to generate electricity, making it one of three early initiatives to successfully convert the dam into a power generation facility.

The project illustrates the enormous potential of a small-scale renewable energy scheme that can be replicated across Indonesia’s more than 5,500 inhabited islands. The technical and financial innovations implemented serve as a model for other projects to emulate. In addition, VGF grant support played a significant role in helping the project reach financial close, after being delayed for several years due to commercial feasibility constraints. The grant enabled the project to obtain a loan from PT SMI.

As of January 2025, PT SMI has financed 94 climate-related projects with a cumulative commitment of IDR 33.5 trillion and a project value of IDR 174.7 trillion. A total of 48 projects have been calculated and have generated avoided Greenhouse Gas (GHG) potential of 4.0 million tons of C02-Equivalent and Carbon Credit Equivalent potential of USD 14 million.

- end -

About PT Sarana Multi Infrastruktur (Persero) (“PT SMI”)

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 of the Republic of Indonesia, 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 3 business pillars, namely Commercial Financing, Public Financing, and Project Development and Advisory Services.

PT SMI has various functions and unique products / features to support the acceleration of infrastructure development, which not only serves as infrastructure financing but also as an enabler through the implementation of the Government and Business Entity Cooperation (KPBU) scheme, involving various financial institutions both private and multilateral. PT SMI actively supports the implementation of Public Private Partnership (PPP) and encourages the acceleration of infrastructure development in the regions through regional loan products.

For further information, please 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
www.ptsmi.co.id