OECD workshop on blended finance guidance for clean energy, 7 April 2022, Paris, OECD

1. KEMENTERIAN KOORDINATOR BIDANG
KEMARITIMAN DAN INVESTASI
GLOBAL BLENDED FINANCE ALLIANCE (BFA)
IN INDONESIA PRESIDENCY G20
APRIL 7th 2022

2. KEMENTERIAN KOORDINATOR BIDANG
KEMARITIMAN DAN INVESTASI
2
Comparison to South Africa Energy Transition
Aims :
Assist in reaching climate change mitigation targets, provide
affordable electricity, reduce power outages and stimulate
local job creation
Aims :
More Ambitious of climate change mitigation targets, provide affordable electricity and stimulate
local job creation
Sector:
Electricity
Sector:
Electricity
Project :
Shifting Coal-fired, Renewable Energy Development with
transmission infrastructures
Shutdown Coal-Fired Power Plants which will end in the
near future (2030-2035)
Project:
Shifting Coal-fired, Renewable Energy Development with transmission infrastructures
The huge of GHGs emissions reductions due the year foregone of Indonesian CFPPs of 5.9 GW
is more than South Africa. Indonesia CFPPs are still young ages (the end of lifetimes are after
the year of 2045 plus the new ones of 13.58 GW will end in after 2050)
Finances :
▪ Multilateral, Bilateral Grant
▪ Guarantees and Private Investment
▪ Concessional loans
Finances :
(Indonesia has more experiences of Global Blinded Finance through Indonesia SDGs One and
Global Climate Fund)
Many resources of finances already committed to support Indonesian Energy Transition include
multilateral, bilateral, international, private/philanthropy and carbon market
Renewable Energy Potential :
Limited resource
Renewable Energy Potential :
Huge and various Renewable Energy potential to generate 437 GW such as wind, solar, tidal,
and geothermal. This is more than 14 times the country’s current electricity consumption.
Indonesia has 40% of the world’s geothermal energy stores, enough for 23.9 GW of energy.
Meanwhile, its huge maritime area could provide 17.9 GW of power
Investment Certainty :
No regulation supports it
Investment Certainty :
Will have regulations regarding Energy Transition along with Blended Finance (the end of March
2022) and It will become legal certainty in Energy Transition investments that will not affect the
change of government
SOUTH AFRICA INDONESIA

3. KEMENTERIAN KOORDINATOR BIDANG
KEMARITIMAN DAN INVESTASI
3
GLOBAL BLENDED FINANCE ALLIANCE (BFA) SUPPORTS ENERGY TRANSITION
GBFA
Global Blended Finances Alliance
ENERGY TRANSITI0N MECHANISM
5.9 GW Early Retirement of CFPPs
+ 3.7 GW Renewable Energy as Coal-
Fired Replacement
*** will launch during Presidency G20
Carbon Reduction Fund
(Carbon Market)
Carbon Cap -Trade - Tax
which includes emission
certificates (SIE) /
allowance
Carbon Offset Trading
which includes offset
certificates (SPEI) /
credit
+
Green Bonds, Stocks, and
Financial Instruments
Green Funds, Grants, and
Aid
SDG Indonesia One
Sustainable Funds Private/Philantrophy
+
Bilateral, Multilateral & Internl
+
THE WORLD BANK
ASIAN DEVELOPMENT BANK
GERMANY
UNITED KINGDOM
UNITED STATES OF AMERICA

4. KEMENTERIAN KOORDINATOR BIDANG
KEMARITIMAN DAN INVESTASI 4
INVITATION TO G20 MEMBERS TO JOIN BFA
The BFA could provide a platform to identify projects, while building investable pipeline, marketing, and meeting investor needs, as
well as enabling investment decisions in general.
1. Indonesia is preparing an initiative to raise international funding in the framework of G20 through the formation of
Global Blended Finance Alliance (BFA).
2. The Global Blended Finance Alliance (BFA) aims to mobilize and facilitate international financing and funds as a
multilateral institution.
3. This BFA will also support and pipeline projects for our energy transition mechanism, carbon market and
environment.
The Concept of BFA
We invite G20 members to join the GBFA which we will establish during the G20 with other countries such as US,
EU Member, UK, Singapore, as well as developing and developed countries.
Global Blended Finance Alliance (BFA)
Invitation to G20 members
1. Structure Membership of BFA
Founder Countries
Co-founder
Member Countries
2. Structure Management
Governor, Board of Director, President, staffs.
3. Source of Funds (mobilization)
Governments, Philanthropy, carbon markets,
Private, International Funding,
International/Local Investors

5. KEMENTERIAN KOORDINATOR BIDANG
KEMARITIMAN DAN INVESTASI

6. KEMENTERIAN KOORDINATOR BIDANG
KEMARITIMAN DAN INVESTASI
BFA In G20 Development Working Group
6
Received input from Issue
Note (Part of G20
Principles)
Received input from
Scoping Note (deep
analysis contains data, best
practices, Blended Finance
recommendation, arranged
by OECD)
Concept note / explanatory note
of BFA will be finalized (Include
BFA contribution in the G20
principles implementation)
BFA will be presented at 2nd
DWG of G20 meeting
Representative of BFA should
attendant to ensure the
delegate of second G20
DWG meeting
After 2nd DWG of G20 the
concept note will be
circulated to the members of
G20.
Drafting G20 principle which
includes the recognition
sentence of the BFA as the
Indonesia government
initiative / contribution.
Finalization of G20 principles
and G20 development
minister communique which
includes the recognition
sentence of the BFA
Development
Ministries meeting of
G20
7-9 September 2022
Development ministries
approve G20 Development
Ministerial communique
which are the commitments of
ministerial (including BFA
recognition sentence)
Serpa G20 will leverage the
BFA recognition sentence to
the leaders declaration

7. THANK YOU
Jalan M.H. Thamrin No. 8, Kebun Sirih,
Menteng, Kota Jakarta Pusat,
COORDINATING MINISTRY OF MARITIME
AND INVESTMENT AFFAIRS
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8. KEMENTERIAN KOORDINATOR BIDANG
KEMARITIMAN DAN INVESTASI
EARLY RETIREMENT OF THE COAL-FIRED
POWER PLANTS
NAGAN RAYA 1-2
220 MW
LABUHANANGIN 1-2
230 MW
CELUKAN BAWANG 1-3
380 MW
CILACAP 1-2
600 MW
ADIPALA
600 MW
SEBALANG 1-2
200 MW
PACITAN 1-2
560 MW
REMBANG 1-2
630 MW
TARAHAN3-4
200 MW
TELUK SIRIH 1-2
224 MW
PANGKALAN SUSU 1-2
400 MW
LONTAR 1-3
945 MW
PELABUHAN RATU 1-3
1050 MW
SURALAYA 8
625 MW
OMBILIN
100 MW
SURALAYA 1-4
1800 MW
SURALAYA 5-7
1600 MW
INDRAMAYU 1-3
990 MW
LABUAN 1-2
600 MW
TJ. AWAR-AWAR1-2
700 MW
PAITON 1-2
800 MW
BUKIT ASAM 1-2
130 MW
1. Exercises were carried out on 22 CFPP with total capacity 13,644
MW; Out of that power plants, 20 CFPP are owned and operated
by PLN and its affiliates (12,644 MW, 93%), while the other 2 are
IPP (980 MW, 7%);
2. Geographically, 8 CFPP are located in Sumatera Grid with total
installed capacity of 1,704 MW - 12.5% - PLN Group, and 14 CFPP
in Java- Bali Grid, 11,940 MW (87.5%); incorporating 2 IPP-owned
CFPPs;
3. Most of the 22 CFPPs were part of the FTP-1 (Fast Track
Program), with total capacity of 8,234 MW, excluding Celukan
Bawang 1-3, Cilacap 1-2, Bukit Asam 1-2, Ombilin, Suralaya 1-4,
Suralaya 5-7 and Paiton 1-2;
4. List of PLN’s proposal 5,505 MW (5.5 GW) are all included into the
list of 22 CFPP, comprising Nagan Raya, Pangkalan Susu,
Labuhan, Teluk Sirih. Ombilin, Bukit Asam, Tarahan, Sebalang,
Suralaya 1-7, dan Paiton 1-2;
5. List of Kemenko Marvest is the same as PLN’s proposal but with
addition Celukan Bawang (380 MW), so that total capacity is 5,931
MW (5.9 GW).
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9. KEMENTERIAN KOORDINATOR BIDANG
KEMARITIMAN DAN INVESTASI
PILOT: EARLY RETIREMENT OF CELUKAN BAWANG
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045
NATURAL RETIREMENT OF CELUKAN BAWANG CFPP 3 x 142 MW
EARLY RETIREMENT OF CELUKAN BAWANG CFPP 3 x 142 MW
A. Capex : USD 700 millions
B. Early Retirement of 2029 : Discounted (NPV)
USD 895 millions
C. Renewable Energy
Instalments as Replacement
: USD 1,971 millions
D. TOTAL COST (B+C) : Discounted (NPV)
USD 2,866 millions
Replace to Renewable Energy
SOLAR
1 GW
HYDRO
25.8 MW
GEOTHERMAL
225 MW
BATERAI
ENERGY
STORAGE
106 MW
WIND
60 MW
TIDAL
10 MW
BIOMASS
19 MW
RENEWABLE ENERGY POTENTIAL IN BALI
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