The Government of Indonesia has launched a funding platform to finance upcoming renewable energy projects as well as to retire existing coal-fired power plants in the country.
PT Sarana Multi Infrastruktur (SMI) has been appointed to manage the platform, which is also known as the energy transition mechanism (ETM). The ETM will consist of two schemes – the carbon reduction facility (CRF) scheme that will be used for the early retirement of coal-fired power plants, and the clean energy facility (CEF) scheme, aimed to develop or reinvest green energy facilities. The platform is also seeking support from all kinds of investors including, the World Bank, the Indonesia National Authority (INA), the Glasgow Financial Alliance for Net Zero (GFANZ), and other multilateral development banks, and the private sector.