Indonesia Geothermal Resource Risk Mitigation Project (GREM) (WB-P166071)

  • Indonesia
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • World Bank (WB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
  • Climate and Environment
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 225.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 485.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ WB website

Updated in EWS Nov 29, 2019

Disclosed by Bank May 15, 2018

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the bank document, the Geothermal Resource Risk Mitigation Project for Indonesia is to scale up investment in geothermal energy development and reduce greenhouse gas emissions in Indonesia.  Some of the negative impacts include:

(i) land clearance for good pads, roads, pipelines and supporting infrastructure will cause direct damage or destruction to natural habitats;

(ii) water abstractions and discharges to water of treated wastewater or drilling fluids and other wastes cause direct or indirect impacts on habitats and species;

(iii)indiscriminate dumping of hazardous and solid waste to riparian zones and waterways;

(iv) discharge of contaminated muds and fluids to the ground;

(v) loss of topsoil, landslides and other severe erosion from road construction, pipelines, pad construction, borrow pits, quarries, fill sites;

(vi) interference from pumping or reinjection of geothermal water, or from the abstraction of freshwater;

(vii) contamination of groundwater from interference with geothermal water from abstraction wells or reinjection wells;

(viii) drilling rig operations, increased traffic, well discharge testing, heavy machinery, and blasting for roads or quarrying – all emit noise not otherwise experienced in the project area;

(ix) dust emissions from road construction, land clearance, site activities;

(x) some risks relating to working with machinery, traffic accidents, falling into ponds, scalding from hot fluids and steam, toxic gas emissions;

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

"The sub-projects will fall into either Category B or Category A Classification". Even though the Draft EIA report has been published since May 2018, the project will likely trigger all the Safeguard policies, excepting Pest Management OP 4.09, Projects on International Waterways OP/BP 7.50, and Projects in Disputed Areas OP/BP 7.60. 

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

*There is no further project information is being disclosed at this stage of the project*


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