FACTSHEET

Geothermal Resource Risk Mitigation (GREM) Facility

GREM is a geothermal exploration
financing facility for Indonesia’s public
and private sectors that aims to
mitigate early-stage development risks
through a de-risking or risk sharing
scheme. It was approved by the Green
Climate Fund (GCF) in October 2018
and recorded as Indonesia’s first-ever
approved funding proposal. The total
facility amount is USD 651.25 million
with financing sources from the GCF,
International Bank for Reconstruction
and Development (IBRD) World Bank,
Clean Technology Fund (CTF), and the
Ministry of Finance through PT Sarana
Multi Infrastruktur (PT SMI). The initial
facility duration is 10 years and will be
completed in 2030.
Complete description of the facility is
available in its approved proposal.
This facility consists of public and private funding windows with Environmental and Social Safeguards (ESS) & Gender
respective beneficiaries, scheme, and financiers. As of July 2021, the Implementation
World Bank as Accredited Entity and PT SMI as the Executing Entity has The safeguards implementation is relevant with the ESS Report.
been collaborating in the operationalization of both windows. The safeguards will be reassessed once the screening of each sub-
project is carried out. The facility has developed an Environmental
and Social Management Framework (ESMF), which has been
Public Window Private Window disclosed and made fully accessible on PT SMI and World Bank’s
websites in May 2019.
Under the Public Sector Window, Under the Private Sector Window, Follow-Up Plan
the GREM Facility supports the GREM Facility supports the • Follow-up discussions with OJK regarding the alignment
the public developers (SOE/ private developers through a of the Financial Instruments GREM Private Window
SOE’s subsidiary) through a combination of a conventional scheme with POJK 30/2019.
combination of loan sourced loan and subscription to a financial • Monitoring the progress of PMK 62/2017 revision, which
from multilateral loans (IBRD, instrument (FI) to be issued by the may impact the GREM Public Window scheme.
GCF, and CTF) and de-risking Developer (on a 50:50 basis). The • Awareness raising to prospective developers on the
facility sourced from Geothermal conventional loan is sourced from facility and its requirements. A Developer Manual
Sector Infrastructure Financing IBRD loan, while the subscription (DM) that provides useful information regarding the
Fund (PISP fund) with maximum to FI is sourced from GCF GREM facility features, requirements, and application
total aggregate limit of Reimbursable Grant and/or CTF guidelines, has been available on PT SMI’s website.
USD 30 million. Contingent Recovery Grant.

Facility’s Timeline

20 October 2018 December 2020-January 2021 June-August 2022

Facility approved by the GCF. This The facility is effective based on legal Estimated first facility disbursement to
facility was proposed 6 months agreements related to the project project developers
earlier on 28 February 2018 under
World Bank as the Accredited Entity
and PT. SMI as executing entity.

This factsheet is developed based

on the Annual Report submitted by
Q4 2018 Q2 2020 Q1 2021 Q2 2021 Q3 2022 2022 - 2030 the Accredited Entity to the GCF. The
information shared here has been
reviewed by the project’s Accredited
Entity and Executing Entity.
15 May 2020 January-May 2021 15 May 2030
Funded Activity Agreement (FAA) signed Awareness raising on the facility and its Facility’s completion
between the GCF and World Bank requirements to prospective developers Contact:
ndagcf-indonesia@kemenkeu.go.id

FACTSHEET: Geothermal Resource Mitigation Risk Facility Progress