USAID begins work on for financing handbook of solar PV projects for the Financial Services Authority (OJK)

14 April 2020

OJK requested USAID ICED II to produce a financing handbook for solar PV projects for use by banks and non-bank financial institutions. Due to USAID ICED II project timeline of ending in September 2020, USAID ICED II will provide the handbook material to OJK. OJK will handle consultation meetings and follow-up activities, which include the approval process from the Commissioner Board of OJK, to finalize handbook to publication. USAID ICED II will present financing mechanisms in the solar PV handbook as well as alternative business models for solar PV projects allowed under current laws and regulations. In preparing this handbook, USAID ICED II has engaged UMBRA Strategic Legal Consulting and LPEM FEB UI, a university-based research body.

In an on-line kick-off meeting USAID ICED II, UMBRA and LPEM UIagreed  that UMBRA would provide analysis on existing/available financing structures for solar PV projects in Indonesia, both for on-grid and off-grid power plants developed by the private sector. The analysis will cover financing structure in capital markets such as bond, initial public offering (IPO), and mutual funds.

LPEM FEB UI will conduct an in-depth structured interviews with banks and solar PV project developers. UMBRA will share slides of graphics on available financing structure to USAID ICED II and LPEM FEB UI, while LPEM FEB UI finalizes the questionnaire for interview.

The next virtual meeting is scheduled for another two weeks. In between, LPEM FEB UI and UMBRA will have a virtual meeting to discuss progress of both parties regarding solar PV project.