Indonesia : Eastern Indonesia Renewable Energy Project (Phase 1)

Nonsovereign Project | 51209-001

Project Details

  • Project Officer
    Shankaran, Bharath
    Private Sector Operations Department
    Request for information
  • Country/Economy
  • Sector
    • Energy
Project Name Eastern Indonesia Renewable Energy Project (Phase 1)
Project Number 51209-001
Borrower / Company PT Energi Bayu Jeneponto
Country / Economy Indonesia
Location Jeneponto, South Sulawesi
Type or Modality of Assistance
3606 Loan Ordinary capital resources USD 56.35 million Committed
8333 Loan Leading Asia's Private Infrastructure Fund (LEAP) USD 56.35 million Committed
8334 Loan Canadian Climate Fund for the Private Sector in Asia II (CFPS II) USD 8.10 million Committed
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Private sector development
Sector / Subsector

Energy / Renewable energy generation - wind

Gender No gender elements
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Portfolio Management Division, PSOD
Responsible ADB Officer Shankaran, Bharath
Project Sponsor(s) Equis Group
PT Global Pacific Energy
Description Phase 1 of the project will construct, operate and maintain a 72 MW wind power plant in Jeneponto (South Sulawesi).
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 and wind energy shall contribute 1.8 GW thereof. 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 one of the first utility scale wind 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.

Status of Operation/Construction Operational
Linkage to Country/Regional Strategy The project supports private sector infrastructure and environment, two of the five core pillars of 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 ADBs SPS requirement for an environment category B project, EBJ has undertaken the preparation of the Environmental and Social Impact Assessments (ESIA) for both wind power project and power transmission line which identified and assessed the project's environmental and social impacts and risks, and outlined appropriate measures to avoid, minimize and mitigate measures in the environmental management plan (EMP).The project site is neither a habitat of terrestrial or avian faunal species, nor it is situated along the global route of migratory birds. Short-term impacts during construction are likely to be limited within the project site and include dust, noise, traffic disturbance due to frequency of delivery trucks, solid waste generated by construction workers and related occupational health and safety risks.
Involuntary Resettlement The project is classified as category C for involuntary resettlement. The project is sited on land purchased on a willing-buyer willing-seller negotiated settlement process. The project will not result in physical or economic displacement arising from involuntary resettlement activities.
Indigenous Peoples The project is classified as category C for indigenous peoples. The project is sited on land, not identified as traditional lands or lands with customary rights. Communities residing near the project area are either from the dominant ethnic Makassar group or in-migrants.
Stakeholder Communication, Participation, and Consultation
Timetable for assistance design, processing and implementation
Concept Clearance 05 Sep 2017
Credit Committee Meeting 29 Nov 2017
Approval 29 Nov 2017
Last PDS Update 16 Feb 2024

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Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Evaluation Documents See also: Independent Evaluation

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Related Publications

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