2. Private Public Partnership and
Funding Mechanism
PT Indonesia
Green • International climate finance
Investment • Budget allocations
• Institutional investors
Invests • Bi- and multilateral aid
Co-invests
Indonesia Green
Private Investors PPPs
Investment
Joint-Investment
Companies Fund
Equity, Debt, Guarantees,
Equity
Concessional climate finance
Regulations/
Fiscal
Incentives
Government Projects
Tax revenue
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3. Example: Feed-in-tariff to scale
renewable energy
Example C: Feed-in-tariff programme for renewable
energy
Pay
Electricity electricity
Consumers bills
Pays
Pays avoided Passes through premium
Debt cost rate premium payment
Provider Independent Int. Sponsor
Power PLN PT IGI G2GIGIF
climate
Equity producer finance
Provider
Passes through
premium payment
Risk Insurance
MIGA/IFC
(private & Public)
Insures against political risks
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4. GOVERNMENT EFFORTS TO REDUCE
ELECTRICITY SUBSIDY
1. Government will gradually reduce the subsidy for electricity.
Efforts 2. Electricity subsidy will be given to small and poor costumers
through implementation of tariff to increase efficiency.
3. Other customers will gradually be charged an economic tariff.
4. This will increase competitiveness and provide a stimulus for
economic recovery.
5. Energy diversification and increase of electricity tariff are the
main factors in reduction of subsidy
6. Funds freed by the reduction of subsidies will be allocated to
electricity infrastructure, research and development of new
and renewable energy.
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