IIF and Arkora Hydro Collaborate on Renewable Energy Funding

Indonesia Infrastructure Finance (IIF) has provided a guarantee facility of up to Rp645 billion for PT Arkora Hydro Tbk’s issuance of the 2026 Environmentally Sustainable Ijarah Sukuk. The guarantee comes as demand for renewable energy project financing grows in Indonesia. The guarantee agreement was signed on 20 May 2026. The guarantee aims to enhance the sukuk’s credit profile and maintain investor confidence in domestic green financing instruments. IIF President Director and CEO Rizki Pribadi Hasan stated that the collaboration underscores the need for financing instruments supporting the national energy transition. “This partnership reflects IIF’s commitment to advancing Indonesia’s energy transition through credible green financing instruments,” Rizki said in a statement on Monday, 25 May 2026. IIF and Arkora Hydro have collaborated since 2019 on financing several hydropower projects, including the issuance of green bonds in 2023. Beyond renewable energy, IIF also provided financing for healthcare and port projects earlier this year. The company’s current transaction pipeline includes telecommunications and digital infrastructure sectors. IIF believes green financing instruments can broaden access to funding for financially viable infrastructure projects while deepening the domestic capital market. Through this partnership, IIF hopes financial market interest in sustainable infrastructure financing will continue to rise alongside national energy transition investment needs.