SMI, Bayang Nyalo Hidro Sign Financing Agreement for Mini Hydro Power Plant

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 450.Pers/04/SJI/2021

Date: 11 December 2021

SMI, Bayang Nyalo Hidro Sign Financing Agreement for Mini Hydro Power Plant

PT Sarana Multi Infrastruktur (SMI) Persero and PT Bayang Nyalo Hidro (BNH) signed a financing agreement to build 3x2 MW Bayang Nyalo Mini Hydro Power Plant (MHP) project in Pesisir Selatan Regency, West Sumatra Province. PT BNH is a subsidiary of Hasnur Group, a national multi-business company from South Kalimantan.The signing was held at the Hasnur Group office at Office 8 Building in SCBD, South Jakarta, on Friday (10/12).

The Bayang Nyalo MHP will need an investment of Rp207 billion. This project was developed as a joint venture between Hasnur Group (51%) and Syres Group (49%). This is the first project for Hasnur Group in the renewable energy.

Director of Operations and Finance and Project Development and Consulting Services of PT SMI, Darwin T. Djajawinata, said that PT SMI's role in carrying out its mandate as a catalyst for national development financing in the Bayang Nyalo MHP project was expected to contribute to increasing renewable energy mix in Indonesia, especially West Sumatra, as well as equitable distribution of infrastructure development outside Java to recover national economy.

This collaboration is expected to open opportunities for further collaboration between PT SMI and the Hasnur Group. Going forward, the Hasnur Group is committed to be more involved in the development of renewables-based power plants. The Hasnur Group is also planning to develop projects in other locations.

On a separate occasion, Head of Bureau of Communication, Public Information Services, and Cooperation of the Ministry of Energy and Mineral Resources, Agung Pribadi, said that the Bayang Nyalo MHP project was expected to help realize the 23% target of new, renewable energy share in the energy mix by 2025 while supporting the government's commitment to achieve the Nationally Determined Contribution (NDC) target by 2030 and Net Zero Emission by 2060.

"This support is an important part of implementing the government's agenda to realize new, renewable energy target by 2025 and NZE by 2060. We really appreciate the efforts made by PT SMI in constructing the Bayang Nyalo MHP," said Agung in Jakarta, Saturday (11/12).

Previously, PT SMI has provided support for developing the renewable energy subsector, for example in Dieng small-scale geothermal power plant of 10 MW at Sikunang Village in Wonosobo Regency, which is managed by PT Geo Dipa Energi (Persero) and is the first small-scale power plant in Indonesia.

For the record, PT SMI which was founded on February 26, 2009, is a state-owned enterprise under the coordination of the Ministry of Finance. PT SMI takes the form of a non-bank financial institution (LKBB). It has a mandate as a catalyst for the acceleration of national development.

PT SMI has various functions and unique products/features that support the acceleration of infrastructure development. It functions not only as an infrastructure financing institution but also as an enabler. It allows the implementation of Public Private Partnership (PPP) scheme, which involves various financial institutions both private and multilateral, and promotes the acceleration of infrastructure development in regions through regional loan products.

PT SMI has three business pillars, namely financing and investment, consulting services, and project development. (IY)

Head of Bureau of Communication, Public Information Services, and Cooperation

Agung Pribadi (08112213555)

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