Jakarta, 27 June 2023 – Concerns from the Government through the Ministry of Energy and Mineral Resources Republic of Indonesia are on the distribution of electricity while taking consideration of the environmental issues that are evolving. The Ministry of Energy and Mineral Resources Republic of Indonesia has encouraged the development and procurement of renewable energy infrastructure projects to produce electricity through Mini Hydro Power Plant (“PLTMH”).

In line with the Government’s mission, PT Phakpak Bumi Energi (“PBE”) as a business entity engaged in the renewable energy sector, is currently developing a PLTMH infrastructure project in Phakpak Bharat area, North Sumatra. The project is planned to utilize the power of water flows of the Lae Ordi River, which is located in Phakpak Bharat area, to develop a
2 x 5 MW scale PLTMH.

As a non-bank financial institution that focuses in the contribution of renewable energy, PT Indonesia Infrastructure Finance (“IIF”) took the opportunity to finance PBE’s PLTMH project through a loan facility worth IDR 288 billion.

On Tuesday, 27 June 2023 at IIF Office the signing ceremony was held for a cooperation agreement between IIF and PBE. The loan will be utilized as a source of fund for construction and operation of the PLTMH. The PLTMH project uses a run-off river system where the power plant will rely on the river flow of the Lae Ordi River to produce energy without stemming the river flow. With the PLTMH in the Phakpak Bharat area of ​​North Sumatra, it is hoped that the benefits of electrical energy can be distributed evenly in the area.

During the ceremony, Reynaldi Hermansjah as the President Director of IIF said that IIF has mature experience in financing the construction of PLTMH. “Thank you for the trust given by PBE to IIF. Given our experience in financing infrastructure in the electricity sector, especially PLTMH. through the signing of the agreement today, we have contributed to the support of equal distribution of electricity in Lampung and North Sumatra regions,” said Reynaldi.

PBE welcomed this collaboration agreement as an effort to equalize the distribution of electricity. PBE projects the electricity that can be generated from PLTMH is an average of 83.87 GWh and will be distributed via Medium Voltage Air Lines (SUTM) to the Siempat Rube Substation in Salak, North Sumatra. On the same occasion, Yudha Ali Putra as the Director of PBE hopes to contribute and benefit the distribution of electricity in the North Sumatra region, especially Phakpak Bharat area.

PT Indonesia Infrastructure Finance

PT Indonesia Infrastructure Finance (“IIF”) is a private non-bank financial institution, which is engaged in infrastructure financing and advisory services that are professionally managed and focused on commercially viable infrastructure projects. IIF was established on January 15, 2010 at the initiative of the Government of the Republic of Indonesia – Ministry of Finance of the Republic of Indonesia together with the World Bank Group, Asian Development Bank (ADB) and other multilateral institutions.

In its operations, IIF applies best practices based on international standards in providing credit, risk management, good corporate governance, and social and environmental protection standards to ensure the sustainability of infrastructure development in Indonesia.

Further Queries:
Nastantio W. Hadi
Head of Legal and Corporate Secretary
PT Indonesia Infrastructure Finance
Telp. (021) 2991 5060; Fax. (021) 2991 5061
corsec@iif.co.id