President Prabowo Inaugurates Ijen Geothermal Power Plant, A Renewable Energy Project Supported by PT SMI

PRNewswire
Jakarta [Indonesia], June 27: The footprint of PT Sarana Multi Infrastruktur (Persero) (PT SMI) in the roadmap of the acceleration of energy transition in Indonesia is becoming increasingly evident. On Thursday, June 26th 2025, President Prabowo Subianto inaugurated Geothermal Power Plant (PLTP) Ijen via video conference, a renewable energy project supported by PT SMI. PLTP Ijen inauguration is one of the events marking the inauguration of renewable energy projects in 15 provinces, the increase in oil production by 30 thousand barrels from the Cepu Block, and the groundbreaking of five PLTPs. The agenda was also witnessed by several government officials such as the Minister of Energy and Mineral Resources, Bahlil Lahadalia, the Governor of East Java, Khofifah Indar Parawansa, and the Governor of West Sumatra, Mahyeldi Ansharullah, all of whom were present at PLTP Ijen, Bondowoso, East Java. The Director of Financing and Investment of PT SMI, Sylvi J. Gani, also attended to witness the inauguration ceremony.
In his speech, President Prabowo emphasized that the event are an important milestone in achieving sustainable national energy independence. "Today is the proof of Indonesia's ability to achieve energy self-sufficiency, which is crucial for our future. Today we inaugurate and commence the construction of 55 new and renewable energy power plants. We inaugurate the geothermal power plant as a proof that Indonesia is moving towards independence. We will stand on our own feet and we will be able to provide energy for all the people of Indonesia in an efficient and economical manner," said President Prabowo.
The Head of State also emphasized that energy sovereignty is part of national sovereignty. According to him, Indonesia has extraordinary renewable energy resources that must be managed optimally. The inauguration is a very important momentum as an effort to make Indonesia an energy self-sufficient nation. President Prabowo expressed appreciation for the hard work of all parties, including government officials, national and international private partners, and the Indonesian youth who have demonstrated their ability to manage large-scale and complex energy projects.
It is the President's message that PT SMI is trying to realize through active contributions in climate change mitigation efforts. "PT SMI is proud to be present here and to be one of the parties appreciated by President Prabowo. The financial support we provide is a form of commitment to building a greener, more inclusive, and competitive Indonesia. PLTP Ijen also serves as an example of synergy between the government and private partners in promoting green investments. This appreciation boosts our spirit to continue strengthening our contribution to the national energy transition for a sustainable future," said the Director of Financing and Investment of PT SMI, Sylvi J. Gani.
PT SMI, as one of the Special Mission Vehicles (SMV) under the Ministry of Finance of the Republic of Indonesia, provides financing facility for the development of PLTP Ijen amounting to USD 144.9 million. In addition to financing, PT SMI also supports the strengthening of cross-sector collaboration, including partnerships with international institutions, such as Agence Francaise de Developpement (AFD) through a blended finance scheme via the SDG Indonesia One (SIO) platform. Besides AFD, other international donor institutions supporting this project include the Global Green Growth Institute (GGGI) and USAID SINAR in the form of Technical Assistance. This collaboration strengthens Indonesia's position in expanding green energy infrastructure, while also demonstrating that the energy transition requires not only technological innovation but also inclusive and sustainable financing.
PLTP Ijen is one of the strategic projects in the development of New and Renewable Energy (EBT) in Indonesia. With a total capacity target of 110 Megawatt (MW), PLTP Ijen is used to produce electricity, which is then distributed to the Java-Bali Electricity System. The presence of PLTP Ijen supports the government's target to increase the share of EBT from 9% to 23% by 2025, in line with the National Medium-Term Development Plan (RPJMN). Additionally, it aligns with Indonesia's target of achieving Net Zero Emission (NZE) by 2060 or sooner, as well as with global commitments to address climate change. The operation of PLTP Ijen has the potential to contribute to the avoidance of Greenhouse Gas emissions amounting to 228,636 to 838,332 tCO2e/year.
In addition to environmental benefits, the PLTP Ijen also has significant social and economic benefits for the surrounding community. The construction and operation of this geothermal power plant create jobs, both directly and indirectly, and open up new business opportunities that can drive the local economy. Thus, the benefits of this project are not only felt in the form of providing clean energy but also in improving the welfare of the communities around the project area.
Since 2018, PT SMI has imposed a moratorium on financing coal-fired power plant projects and has shifted to projects that contribute to reducing carbon emissions and greenhouse gas effects, or climate change projects. PT SMI's commitment is reflected in the financing portfolio for climate change projects, which stands at 19%, higher than the financing commitment for coal-fired power plants at 10.2% of the total financing commitment of Rp150.2 trillion as of April 2025. Overall, PT SMI has financed 96 climate change projects with a financing commitment of Rp34.1 trillion and a project value of Rp175.3 trillion.
About PT Sarana Multi Infrastruktur (Persero) ("PT SMI")
PT Sarana Multi Infrastruktur (Persero) ("PT SMI"), established on February 26, 2009, is a State-Owned Enterprise under the coordination of the Ministry of Finance, in the form of a Non-Bank Financial Institution (LKBB). PT SMI plays a role and has a mandate as an agent of sustainable development. PT SMI has 3 business pillars, namely Commercial Financing, Public Financing, and Advisory Service and Project Development.
PT SMI has various functions and unique products/features to support the acceleration of infrastructure development, which not only serves as infrastructure financing but also as an enabler through the implementation of the Government and Business Entity Cooperation (KPBU) scheme involving various financial institutions, both private and multilateral. PT SMI actively supports the implementation of Public Private Partnership (PPP) and encourages the acceleration of infrastructure development in the regions through regional loan products.
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