Jakarta (Indonesia Window) – The World Bank’s Board of Executive Directors approved a loan of US$150 million for Indonesia to increase investment in geothermal power, the Government News Network (JPP) reported as quoted by Indonesia Window here on Sunday.
World Bank State Director for Indonesia and Timor-Leste Rodrigo A Chaves in Jakarta some time ago said this loan could support funding for exploration drilling which has been one of the obstacles in expanding geothermal power in Indonesia.
“By overcoming these obstacles, Indonesia will fully utilize the huge geothermal potential in this country,” said Rodrigo Chaves.
This loan is accompanied by a grant of US$127.5 million from the Green Climate Fund and Clean Technology Fund which supported environmentally friendly development projects.
Through the Geothermal Resource Risk Mitigation (GREM) project, the loan will help developers, both public and private sectors, reduce the risk of geothermal resource exploration including covering some costs if exploration fails.
The project will also finance technical assistance and increase the capacity of key stakeholders in the geothermal sector.
Reporting by Indonesia Window