DESCRIPTION
The project's objective is to enhance PT Sarana Multi Infrastruktur (Persero) (PT SMI), institutional capacity, enabling it to design and establish systems to coordinate and implement a national just transition framework within the context of Indonesia's country platform on Energy Transition Mechanism (ETM). Additionally, it aims to expedite financing efforts for the government of Indonesia’s energy transition initiatives.
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KEY DELIVERABLES
This technical assistance (TA) support is part of Component 1: Accelerated Retirement of Coal Plants, under the Indonesia ACT Country Investment Plan. The TA engagement will kick-start and complement Investment Component 1.1(b), which pertains to PT SMI's early retirement program for coal-fired power plants (CFPP).
The project will deliver two key outputs: (i) the development and pilot implementation of a just transition framework for PT SMI for its role as ETM Country Platform (ETMCP) manager; and (ii) capacity building for PT SMI to execute a just transition financing program.
The TA project will complement and enable the Accelerating Coal Retirement Facility (ACRF) and debt financing to support the accelerated retirement of PLN-owned CFPPs. ADB’s financial intermediary loan (FIL), a CIF-ACT loan and financing from commercial lenders will be blended with the Government Investment Fund (Operator Investasi Pemerintah, OIP) contributing to ACRF, which may be established as a trust fund within PT SMI.
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| Modality | Financing Type | Financing Source | Financing Intermediary | Amount (Home Currency) | Amount (USD) | Part of JETP Pledge |
|---|---|---|---|---|---|---|
| Modality A | Grant / TA | CIF Infusion (ACT) | Asian Development Bank | USD 1,000,000 | USD 1,000,000 | Yes |