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Indonesia: Eastern Indonesia Renewable Energy Project (Phase 2)

This project will construct and operate 21 MW of solar power plants across 4 locations in Indonesia. The goal is to increase renewable energy capacity and meet the country's targets of 23% renewable energy by 2025. The project supports private sector investment in solar power and addresses challenges of being a first mover in Indonesia's solar market. It is categorized as low risk for environmental and social safeguards.

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60 views2 pages

Indonesia: Eastern Indonesia Renewable Energy Project (Phase 2)

This project will construct and operate 21 MW of solar power plants across 4 locations in Indonesia. The goal is to increase renewable energy capacity and meet the country's targets of 23% renewable energy by 2025. The project supports private sector investment in solar power and addresses challenges of being a first mover in Indonesia's solar market. It is categorized as low risk for environmental and social safeguards.

Uploaded by

bayu kuncoro
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Indonesia: Eastern Indonesia Renewable Energy Project (Phase 2)

Project Name Eastern Indonesia Renewable Energy Project (Phase 2)


Project Number 51209-002
Borrower/Company PT Infrastruktur Terbarukan Adhiguna
PT Infrastruktur Terbarukan Buana
PT Infrastruktur Terbarukan Cemerlang
PT Infrastruktur Terbarukan Lestari
Country Indonesia
Location Likupang, Lombok
Approval Number 7553/3656, 7552/3655, 7550/3653, 7551/3654
Type of ADB Assistance / Canadian Climate Fund for the Private Sector in Asia II (CFPS II) USD 0.00 Approved
Amount
Leading Asia's Private Infrastructure Fund (LEAP) USD 0.00 Approved
Ordinary capital resources USD 0.00 Approved

Strategic Agendas Environmentally sustainable growth


Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Partnerships
Private sector development
Sector / Subsector Energy - Renewable energy generation - solar
Gender Equity and Some gender elements
Mainstreaming
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Portfolio Management Division, PSOD
Responsible ADB Officer Yasumura, Kota
Project Sponsor(s) Equis Group
PT Global Pasifik Terbarukan
PT Infrastruktur Terbarukan Mandiri
Redaya Energi Solar, Pte. Ltd.
Description Phase 2 of the project will construct, operate and maintain a 21 MW solar power plant in Likupang
(North Sulawesi) and three 7 MW solar power plants, in Pringgabaya, Selong, and Sengkol
(Lombok, West Nusa Tenggara).
Objectives and Scope The Government of Indonesia has set ambitious targets to increase the share of energy supplied
from renewable energy from 12% in 2013 to 23% in 2025. Therefore, the Ministry of Energy and
Mineral plans to increase the capacity of grid power generation through new and renewable
energy to 45 GW by 2025. The Project contributes to the acceleration and expansion of private
sector investments in clean energy infrastructure in Indonesia.
The Project supports a leading private sector player (Equis Group) in its contributions towards this
goal. The concessional financing from the Canadian Climate Fund for the Private Sector in Asia II
(CFPS II) was needed to assist with implementation of the first utility scale solar power projects in
Indonesia and to help the project sponsors to address its first mover costs and disadvantages as
well as overcome various technical and regulatory challenges.
Linkage to Country/Regional The project supports private sector infrastructure and environment, two of the five core pillars of
Strategy the ADB strategy as reaffirmed by the Midterm Review of Strategy 2020. The project is consistent
with the country partnership strategy for Indonesia, 2016-2019 by supporting the expansion of
infrastructure and environment-friendly technologies for clean energy generation. The project is
consistent with ADB's Energy Policy, which states that support for renewable energy projects will
be prioritized and broadened.

Safeguard Categories

Environment B
Involuntary Resettlement C
Indigenous Peoples C

Summary of Environmental and Social Aspects

Environmental Aspects To meet Safeguard Policy Statement environment category B project requirements, Equis Energy has
prepared environmental and social impact assessments for the four solar power subprojects including
power transmission lines. It also prepared an environmental management plan outlining appropriate
measures to avoid, minimize, and mitigate any impacts. Most of the project components, such as the solar
panels and transmission line poles, will be situated on rain-fed dry agricultural land historically planted with
corn, cassava, and beans. None of the four solar subprojects or their surrounding areas are located in or
near an environmentally sensitive area.
Involuntary The Project is classified as category C for involuntary resettlements. The SPVs procured project land using
Resettlement a willing buyer, willing seller process without availing themselves of the provisions of the National Land
Agency Law No. 2/2012 on land procurement for development in the public interest. Land acquisition did
not result in involuntary resettlement because of physical or economic displacement.
Indigenous Peoples The Project is classified as category C for indigenous peoples. The majority of the subproject area
population in North Sulawesi belong to the Sainghe Talaud ethnic group, a subgroup of the Minahasa which
is the dominant ethnic group in the province. In Lombok, West Nusa Tenggara, 80% of the subproject area
population originated from the Sasak Tribe, the dominant ethnic group in the area. The subproject areas
are not situated in or overlapping any traditionally owned land or lands with customary rights. The ethnic
groups residing in the subproject area villages are not separate from mainstream North Sulawesi and West
Nusa Tenggara society, and are neither distinct nor vulnerable.
Stakeholder
Communication,
Participation, and
Consultation

Timetable for assistance design, processing and implementation

Concept Clearance 05 Sep 2017


Due Diligence
Credit Committee Meeting 12 Mar 2018 to 12 Mar 2018
Approval 11 Apr 2018
Last PDS Update 25 Apr 2018

Project Page https://www.adb.org/projects/51209-002/main


Request for Information http://www.adb.org/forms/request-information-form?subject=51209-002
Date Generated 16 October 2018

ADB provides the information contained in this project data sheet (PDS) solely as a resource for its users without any form of
assurance. Whilst ADB tries to provide high quality content, the information are provided "as is" without warranty of any kind, either
express or implied, including without limitation warranties of merchantability, fitness for a particular purpose, and non-infringement.
ADB specifically does not make any warranties or representations as to the accuracy or completeness of any such information.

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