IIF partners with Arkora Hydro to support green energy financing through Sukuk
Our long-term collaboration with Arkora Hydro demonstrates how strategic financing can accelerate the development of renewable energy projects.
Jakarta (ANTARA) – Financing institution PT Indonesia Infrastructure Finance (IIF) has provided a guarantee facility to PT Arkora Hydro Tbk to support renewable energy financing through the issuance of Sharia-compliant Sukuk bonds.
“This partnership reflects IIF’s commitment to advancing Indonesia’s energy transition through credible green financing instruments,” said IIF President Director Rizki Pribadi Hasan in a statement received in Jakarta on Monday.
The support is provided via a Guarantee Facility Agreement between IIF and Arkora Hydro for the latter’s 2026 Environmentally Sustainable Ijarah Sukuk issuance.
Under the agreement, IIF has provided a guarantee facility of up to Rp645 billion to strengthen the sukuk’s credit profile and boost investor confidence in Indonesia’s green financing instruments.
“Our long-term collaboration with Arkora Hydro demonstrates how strategic financing can accelerate renewable energy project development,” Rizki said.
IIF, a financing institution owned by PT Sarana Multi Infrastruktur (SMI) (Persero), the Asian Development Bank (ADB), and other entities, has collaborated with Arkora Hydro since 2019 on financing several hydropower projects in Indonesia, including the company’s green bond issuance in 2023.
The collaboration aims to support the development of domestic renewable energy assets.
Rizki explained that as an infrastructure development catalyst, IIF works complementarily with the financial industry to expand financing across various infrastructure sectors.
In early 2026, IIF has disbursed financing for health and port projects. Currently, he said, IIF’s transaction pipeline also includes telecommunications and digital infrastructure sectors.
“IIF also supports the growth and deepening of Indonesia’s capital market by enabling credible and bankable projects to access broader funding sources,” he said.
Through the collaboration with Arkora, Rizki explained that IIF aims to strengthen partnerships in renewable energy financing and encourage greater financial market participation in Indonesia’s sustainable infrastructure agenda.