CHALLENGES)IN)THE)MARKET) What%Are%the%Op+ons?% - - PowerPoint PPT Presentation

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Apr 19, 2023 318 likes •438 views

Risk%Averse% Approach% Short%Tenure% and%Size%of% Project% High% Collateral% Requirement% CHALLENGES)IN)THE)MARKET) What%Are%the%Op+ons?% COMMERCIAL(FINANCING( Mainly(Corporate(Financing(

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CHALLENGES)IN)THE)MARKET)

High% Collateral% Requirement% Short%Tenure% and%Size%of% Project% Risk%Averse% Approach%

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Mainly(Corporate(Financing(
Handful(of(project(financing(with(high(collateral(

requirement( COMMERCIAL(FINANCING(

LPEI/(EXIM(BANK(
PT(SMI(
PIP(

PUBLIC/PRIVATE(FINANCING(

Loan/Equity(or(Mezannine(

InternaNonal(Development(Funding(

What%Are%the%Op+ons?%

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The objective of Energy Efficiency Project Finance Program (“EEPFP”) is to reduce existing barriers for energy-consuming export-import industrial facility owners in Indonesia (“Hosts”) to

btain local debt

financing for properly implemented EEPs on commercially attractive terms.

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Limited Collateral Requirements Free Technical Assistance (Project Concept & Investment Grade Audit) Positive Cash Flow

EEPFP Aims to encourage PILOT PROJECT of Energy Efficiency Loan with financial structure that is more attractive to companies compare to conventional loans

EEPFP is a Joint program by Indonesian Exim Bank and Asian Development Bank to offer a below-market rate loan that has specific features:

1. Require limited collateral: Energy

saving as primary collateral

2. Free Technical Assistance: Offers

free technical assistance in a form of project concept and Investment Grade Audit

3. Positive Cash Flow: Ensures the

project saving to be able to pay for the loan installment and to have POSITIVE Cash Flow for the company

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PUSAT INVESTASI PEMERINTAH supports green financing

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CLEAN ENERGY FOCUS PUSAT INVESTASI PEMERINTAH

PIP is commited to do investment on Green Projects as mandated by KMK Nomor 177/KMK.01/2010 Purpose: to suppor green development especially in managing climate change through expansion and acceleration of government investment and development of public-private partnership Sektor prioritas menurut KMK 177, antara lain meliputi:

Renewable Energy Green Transport Waste Management Biomass Bioethanol Reduction Emission From Deforestation & Degradation Plus (REDD+) Water Management

Partners: Regional Government, State Owned Enterprises and Private sector

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INVESTMENT FOCUS CLEAN ENERGY

Street Lighting Upgrade Waste to Energy Building Retrofit Mini Hydro

Energy Efficiency Renewable Energy

Geothermal Others: Biomass, Biogas, Solar

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FEATURES PIP FINANCING

Below the market Longer tenure and no penalty for early repayment Cooperation and Technical Assistance that is

collaborative

Interest Rate Loan Tenure Collaborative Mechanism Loan Proportion can be 80% (above

ther banks)