Ormat and PT SMI explore financing options for geothermal projects in Indonesia
Signing of cooperation agreements at the 11th Indonesia International Geothermal Convention & Exhibition in Jakarta, Indonesia (source: PT SMI)
Carlo Cariaga
18 Sep 2025
PT SMI and PT Ormat Geothermal Indonesia will be exploring financing options for the exploration of two geothermal sites in Maluku and Sulawesi in Indonesia.
A cooperation agreement has been signed between PT Sarana Multi Infrastruktur (Persero) (PT SMI) and PT Ormat Geothermal Indonesia to explore financing options for geothermal exploration in two sites in Indonesia – Wapsalit in Maluku, and Toka Tindung in North Sulawesi. The signing of the agreement was done during the 11th Indonesia International Geothermal Convention and Exhibition (IIGCE), held in Jakarta.
Initial financing options will utilize the Geothermal Resource Risk Mitigation Program (GREM) facility, a geothermal exploration financing facility developed by the World Bank and Government of Indonesia through PT SMI. It is a scheme that allows for risk sharing between developers and financing institutions that is intended for both state-owned and private developers.
The collaboration sets to provide a model for geothermal exploration risk mitigation in Indonesia, particularly through the cooperation of the government entities, financing institutions, and private corporations.
“Through our collaboration with PT Sarana Multi Infrastruktur (Persero), we fully support the government’s agenda of encouraging green investment and the development of environmentally friendly energy infrastructure through our technology and capabilities,” said PT Dion Murdiono, President of PT Ormat Geothermal Indonesia.
Reynaldi Hermansjah, President Director of PT SMI, commented that they are the only financing institution that provides integrated financing facilities for both the initial stages of exploration, as well as development and expansion. PT SMI is a Special Mission Vehicle under the Ministry of Finance which is engaged in development financing. The agency had also been involved with the development of the 10-MW small-scale power plant in Dieng, in partnership with PT Geo Dipa Energi.
Another project which has been funded by PT SMI is the Ijen geothermal power plant, which was just inaugurated earlier this year.
“Through sustainable infrastructure financing, we are committed to accelerating the transition to renewable energy, a key initiative in the government’s Asta Cita (Asta Cita Pemerintah), which is to realize a self-sufficient economy by strengthening strategic sectors such as energy, food, and national industry.” said Reynaldi.
“In addition to supporting environmental sustainability, this transition also creates new jobs and improves public welfare. With this vision, Indonesia is geared towards becoming a developed nation that is energy independent and environmentally friendly.”
Source: PT SMI
