Indonesia

Indonesia, one of the most populous countries in the world with a growing economy, is working to harness its remarkable geothermal power potential to meet increasing energy demands and reduce greenhouse gas emissions. It is also focusing on its vast tropical forests to achieve mitigation and development goals.

INVESTING IN INDONESIA

Under the CTF, Indonesia has created an investment plan that is using $400 million to advance geothermal development. CTF concessional financing is facilitating commercial lending that is expected to lead five geothermal projects totaling 750 MW to financial closure, setting a benchmark for commercial bank lending. The CTF is also providing risk capital to help other projects complete the exploratory drilling phase of development.

Under the FIP, $70 million in grants and low-cost financing aims to enhance institutional capacity for forest management and support community-based forest management, capacity building, and livelihoods development. Forestry enterprises and firms in related sectors outside of forests are also being engaged to integrate sustainable land use practices in their business operations.

FACTS ABOUT INDONESIA

Home the third-largest area of tropical forest in the world, after Brazil and the Democratic Republic of the Congo

70%

of the land area is forests and the country possesses 40% of the planet’s known geothermal energy potential

Projects in Indonesia

NAME FUND FUNDING (USD MILLION) COFINANCING (USD MILLION) MDB
  Community-Focused Investments to Address Deforestation and Forest Degradation(CFI-ADD+) FUNDForest Investment Program COFINANCING (USD MILLION) 17.00 FUNDING (USD MILLION) 1.70 MDBADB  
  Geothermal Clean Energy Investment Project FUNDClean Technology Fund COFINANCING (USD MILLION) 125.00 FUNDING (USD MILLION) 449.70 MDBIBRD  
  Geothermal Electricity Finance (IGEF) Program FUNDClean Technology Fund COFINANCING (USD MILLION) 19.30 FUNDING (USD MILLION) 2270.00 MDBIFC  
  Geothermal Energy Upstream Development Project FUNDClean Technology Fund COFINANCING (USD MILLION) 49.00 FUNDING (USD MILLION) 49.00 MDBIBRD  
  Private Sector Geothermal Energy Program FUNDClean Technology Fund COFINANCING (USD MILLION) 149.25 FUNDING (USD MILLION) 2283.60 MDBADB  
  Promoting Sustainable Community-Based Natural Resource Management and Institutional Development FUNDForest Investment Program COFINANCING (USD MILLION) 17.35 FUNDING (USD MILLION) 5.07 MDBIBRD  
  Renewable Energy Program (REP) FUNDClean Technology Fund COFINANCING (USD MILLION) 54.10 FUNDING (USD MILLION) 290.00 MDBIFC  
  Strengthening Rights and Economies of Adat and Local Communities Project FUNDForest Investment Program COFINANCING (USD MILLION) 6.33 FUNDING (USD MILLION) MDBIBRD  

TRANSFORMING VISION INTO ACTION

The CIF programmatic approach to investment planning and implementation brings strategic value to CIF recipient countries. Working through a transparent, country-led process, the CIF fosters trust and collaboration among government ministries, civil society, indigenous peoples, private sector, and the MDBs that implement CIF funding. Together they translate Nationally Determined Contributions and other national development and climate strategies into an actionable CIF investment plan. Rather than one-off projects, the plan comprises long-term, sequenced investments that mutually reinforce each other and link to other critical activities, such as policy and regulatory reform and capacity building. Under national government leadership, CIF stakeholders continue to work together to implement the plan, continually assessing progress and sharing lessons learned along the way.