WB to provide $50m grant for geothermal development in eastern Indonesia

By Cepi Setiadi

PT Sarana Multi Infrastruktur (SMI), a state-owned infrastructure financing company, stated that World Bank (WB) is committed to granting around US$50 million for the development of geothermal power in eastern Indonesia. The funds will be managed by SMI.

Darwin Trisna Djajawinata, a director at SMI, told Petromindo.com on Wednesday that the funds will be disbursed later this year.

Darwin revealed that the fund will be uses for activities such as drilling of first exploration well. ?The funds are entirely allocated for new geothermal projects in eastern part of Indonesia,? he reiterated.

SMI has been assigned by the government to manage a total of Rp 3.1 trillion in the so-called Geothermal Support Funds created by the government to support geothermal exploration and exploitation activities.

SMI was established in 2009 as a state-owned enterprise under the ministry of finance to support the government?s infrastructure development program in partnerships with private and/or multilateral financial agencies in Public-Private Partnership (PPP) projects.

Editing by Johannes Simbolon