GREM is a geothermal exploration financing facility developed by World Bank and Government of Indonesia through PT Sarana Multi Infrastruktur (Persero) (“PT SMI”). The special feature of GREM is the availability of a de-risking facility or a risk sharing scheme at which in the event of an exploration failure, the developer does not fully bear the risks and costs of exploration. The existence of the GREM facility which has a de-risking feature for upstream development is expected to reduce exploration risk as the biggest risk faced by geothermal developers. GREM facility is intended for SOE developers/subsidiaries of SOEs (GREM Public Window) and private developers (GREM Private Window).
The total commitment of GREM funding is USD 651.25 million which comes from a combination of multilateral funds (IBRD, GCF, CTF) and Geothermal Sector Infrastructure Development (PISP) funds. The de-risking component for the GREM Public Window comes from PISP funds with a total of USD 150 million, while for the GREM Private Window it comes from the reimbursable grants of GCF and CTF managed by the World Bank for a total of USD 122.5 million. All funding agreements for the GREM facility have been signed and effective.

GREM Facility for Geothermal Developers
In the GREM facility, PT SMI will support the geothermal exploration activities conducted by the developers through:
- Provision of loan and de-risking facilities with a maximum total limit of USD 30 million to public developers (SOE/subsidiaries of SOEs) for exploration drilling stage;
- Provision of loan and de-risking facilities (through the purchase of Financial Instruments that are issued by developers) with a maximum total limit of USD 30 million to private developers for exploration drilling stage;
- Provision of loan facilities of up to USD 30 million to public developers (SOE/subsidiaries of SOEs) and private developers for delineation/extended exploration drilling stage.


General Criteria for the Recipient of GREM Facility
- The Developer has a valid geothermal exploration license (or, in the case of joint ventures with PLN, has been given the rights to use a valid license)
- The Developer has been operating for a minimum of 3 (three) years, or in the case of a new SPV, the Sponsor (at least one of the founding companies/parent companies/JV partners) has been operating for a minimum of three years
- The Developer has at least 3 (three) years of audited financial statement or in the case of a new SPV, at least one of the founding companies/parent companies/JV partners has 3 (three) years of historical financial statements, with minimum two years audited financial statement
- The Developer has geothermal exploration expertise, which may be its Sponsor’s expertise provided it is made available to the Developer or which may result from the recruitment of consultants (as indicated in the key personnel curriculum vitae)
- The Developer declares that neither it nor its Sponsor has ever been involved in activities related to money laundering and/or financing of terrorism
- The Developer declares that neither it nor its Sponsor has ever been sanctioned under the World Bank Group Sanctions System
- The Developer provides environmental and social impact documentation and policy, which are considered acceptable by PT SMI, including for the purpose of complying with PT SMI’s own environmental and social obligations to IBRD (GREM Environmental and Social Management Framework (ESMF) document: https://ptsmi.co.id/cfind/source/files/ess/esmf-geothermal-resource-risk-mitigation-project-grem.pdf
- For GREM Public Window, the public developers shall also comply with the World Bank procurement guidelines (http://pubdocs.worldbank.org/en/178331533065871195/Procurement-Regulations.pdf)