Wahyu Dwi Anggoro
IDXChannel - The United States International Development Finance Corporation’s (DFC) Deputy Chief Executive Officer (DCEO) Nisha Biswal has announced a new, up to USD126 million commitment for the Indonesian power company PT Medco Cahaya Geothermal.
The DFC commitment for the company is in coordination with Indonesian infrastructure bank PT SMI, the current project financing lender. It will support the development and operation of a new 31MW Phase I power plant, Ijen Geothermal, which will increase renewable power generation in East Java – one of the country’s most densely populated provinces with 40 million people – and provide much-needed low-carbon baseload power generation capacity to the Java-Bali grid, Indonesia’s largest power system.
“The Ijen Geothermal power plant is a key part of Indonesia’s ambitious strategy for an energy transition,” said Biswal in a media release.
“This project also reinforces our shared goals through the US-Indonesia Comprehensive Strategic Partnership, which will enhance economic and energy security for both of our countries," Biswal added.
Indonesian officials and analysts alike consider power grid improvements as key to supporting the Just Energy Transition Partnership, or JETP, that Indonesia developed with other world leaders during its G20 presidency.
