Indonesia drafts low-cost financing scheme for green energy

Source: Indonesia Growth Opportunity and Market Expansion


The National Development Planning Board (Bappenas) is now preparing a green financing scheme for companies that are appointed to develop new and renewable energy.

Bappenas head and National Development Planning Minister Bambang Brodjonegoro said in Jakarta on Tuesday that such companies could get the low-cost financing through a blended finance scheme to fund their new and renewable energy projects.

“We will make it low-cost financing through a blended scheme. We will blend commercial banking loans with non-commercial financing because if it relied on commercial financing only, [the cost would be] too high,” Bambang said as reported by

The minister said the institutions that would be responsible for finding low-cost financing for such projects were the Indonesian Climate Change Trust Fund (ICCTF) and non-state budget investment financing (PINA).

He said many international institutions provided low-cost financing through green financing schemes as incentives for countries or corporates, which had a commitment to develop green projects such as new and renewable energy projects.

To implement its commitment to reduce greenhouse emissions, the Indonesian government has to boost the contribution of new and renewable energy to 23 percent of the country’s total consumption by 2025.

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