The Financing of Tongar Mini-Hydro Power Plant in Kajai, West Sumatra (PLTM Tongar)
Huge congratulations to PT Sarana Multi Infrastruktur (Persero) and PT Optima Tirta Energy for the signing of the facility agreement to finance the development of Tongar mini-hydro power plant located in Kajai, West Sumatra (PLTM Tongar) which is not only expected to contribute to the achievement of the renewable energy mix target of 23% in 2025, but also to support distribution of infrastructure development outside Java as a part of the national economic recovery.
We are especially pleased that the project is reported in the Ministry of Energy and Mineral Resources (MEMR) press release https://lnkd.in/gT5jkJKe, where MEMR spokesperson credited PT SMI for creating a new milestone for renewable funding model in Indonesia that alleviates the burden on State Budget and helps the Government to meet its commitment to achieve the Nationally Determined Contribution target in 2030 and Net Zero Emission by 2060. Indeed, the project receives bilateral support from the governments of Indonesia and Japan as a Joint Crediting Mechanism project, being a joint venture project of an Indonesian listed construction company and a Japanese power and infrastructure company.
Led by our Project-Finance Senior Partner Kirana Sastrawijaya and Banking & Finance Senior Partner Putu Raditya Nugraha, we are honoured to act as the lender’s counsel in the financing of this project and have the chance to support the ever-growing expansion of renewable projects in Indonesia which will be the future of our country’s energy source and sustainability. Congratulations again to all the parties involved!
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