Indonesia : Eastern Indonesia Renewable Energy Project (Phase 2)
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).
Private Sector Operations Department
Request for information
|Project Name||Eastern Indonesia Renewable Energy Project (Phase 2)|
|Borrower / Company||PT Infrastruktur Terbarukan Adhiguna
PT Infrastruktur Terbarukan Buana
PT Infrastruktur Terbarukan Cemerlang
PT Infrastruktur Terbarukan Lestari
|Country / Economy||Indonesia
|Type or Modality of Assistance||
|Strategic Agendas||Environmentally sustainable growth
Inclusive economic growth
|Drivers of Change||Partnerships
Private sector development
|Sector / Subsector||
Energy / Renewable energy generation - solar
|Gender||Some gender elements|
|Responsible ADB Department||Private Sector Operations Department|
|Responsible ADB Division||Portfolio Management Division, PSOD|
|Responsible ADB Officer||Nguyen, Lien|
|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 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.|
|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 Resettlement||The Project is classified as category C for involuntary resettlements. The SPVs procured project land using 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|
|Credit Committee Meeting||12 Mar 2018|
|Approval||11 Apr 2018|
|Last PDS Update||04 Apr 2023|
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.
The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
|Title||Document Type||Document Date|
|Eastern Indonesia Renewable Energy Project (Phase 2): Initial Poverty and Social Analysis||Initial Poverty and Social Analysis||Nov 2018|
|Eastern Indonesia Renewable Energy Project (Phase 2): Report and Recommendation of the President||Reports and Recommendations of the President||Mar 2018|
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
None currently available.
None currently available.
The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.
Requests for information may also be directed to the InfoUnit.
Power and Empower: Renewable Energy Investments in Indonesia are Helping Rural Women Expand Their Cassava Chips BusinessADB's renewable energy investments in Eastern Indonesia are helping local women in surrounding villages expand their small businesses through livelihood training.
Power and Empower: Creating Jobs for Lombok Women through Solar Power Skills TrainingADB-supported solar projects in Lombok Island, Indonesia encourage women to participate in its training and certification program and strengthen their technical capacity to join the renewable energy workforce.
Power and Empower: Improving Lombok Women’s Lives by Investing in Clean EnergySolar power projects in Lombok Island, Indonesia have opened opportunities for women through jobs and training.
How Cofinancing Spurs Private Investments in Climate Solutions and Gender Equity across Asia and the PacificThe Government of Canada is a key partner in ADB’s efforts to establish an enabling environment for private sector climate financing in Asia and the Pacific.
ADB Finances First Ever Utility-Scale Solar PV Plants in Indonesia in $160 Million Renewables DealADB today announced a private sector financing package totaling approximately $40 million to invest in Indonesia’s first utility-scale solar photovoltaic (PV) plants on a project-finance basis.