Indonesia: Funding to Help Minimize Risks During Geothermal Resource Exploration Stage

New regulation opens way for geothermal sector’s infrastructure financing (Jakarta Post)

(Courtesy CIA.gov)

The Indonesian Finance Ministry recently issued a new ministerial decree regulating the management of funds for the geothermal sector by state-owned infrastructure financing company PT Sarana Multi Infrastruktur (SMI).

The new decree stipulates that SMI will be able to supply funds to be used for loans, capital or exploration activities to compile data.

SMI's funding is expected to help minimize the risks that come with the large investments needed during the exploration stage, which has led to a lack of eagerness from prospective investors.

The government hopes the funds will help with new discoveries, which will eventually increase the use of geothermal for electricity generation.

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