Indonesia Geothermal Resource Risk Mitigation Project (GREM)

The objectives of the Geothermal Resource Risk Mitigation Project of Indonesia are to scale up investment in geothermal energy development and support the Borrower in its efforts to reduce greenhouse gas emissions in the country. The project has two components. Component 1 is to mitigate risks in geothermal resource drilling supported through the establishment of a new financing facility is financed with 455 million US Dollars, which consists of 150 million US Dollars from IBRD loan, 97.5 million US Dollars from the GCF loan and reimbursable grant, 72.5 million US Dollars from Clean Technology Fund (CTF) loan and contingent recovery grant, 75 million US Dollars from the Clean Technology Fund (CTF) loan and contingent recovery grant, 75 million US Dollars from Gol’s PISP loan, which will leverage 60 million US Dollars in private developers’ equity. Component 2 for technical assistance and capacity strengthening is financed with 10 million US Dollars grant, which consists of 2.5 million US Dollars from GCF, 2.5 million US Dollars from CTF, 2.5 million US Dollars from the Energy Sector Management Assistance Program (ESMAP) and 2.5 million US Dollars from the Global Infrastructure Facility (GIF).