INDONESIA: FINANCIAL ANALYST FOR ASSESSING LOCAL CURRENCY FINANCING

INTRODUCTION TO GGGI

The Global Green Growth Institute (GGGI) is a treaty-based international, inter-governmental organization dedicated to supporting and promoting strong, inclusive and sustainable economic growth in developing countries and emerging economies. To learn more please visit about GGGI web page. 

GGGI supports stakeholders through complementary and integrated workstreams – Green Growth Planning & Implementation and Knowledge Solutions – that deliver comprehensive products designed to assist in developing, financing, and mainstreaming green growth in national economic development plans. GGGI supports the Government of Indonesia in three focal areas: renewable energy, green cities and special economic zones, and forest and land-based mitigation and adaptation projects. The Program, known as the ‘GoI-GGGI Green Growth Program’ (GGP), aims to demonstrate that green investments can become the norm both for investors and planners, ultimately improving the quality of economic development for more environmental sustainability and social inclusion. Through the Program, GGGI collaborates with the Ministry of Development Planning (BAPPENAS), the Coordinating Ministry of Economic Affairs, Ministry of Finance, Ministry of Energy and Mineral Resources, Ministry of Environment and Forestry, PT Sarana Multi Infrastruktur (“PT SMI”) and others.

GGGI is delivering the Supporting Energy Transition Mechanism (SETM) project which aims to enhance access to financing for the Indonesia Energy Transition Mechanism Country Platform (Indonesia ETMCP).  The Indonesia ETMCP was launched in November 2022 during the G-20 as an effort to support the country achieve its climate ambition and Net Zero target. The ETMCP aims to mobilize USD 4.6 Billion to accelerate the retirement of 2 GW coal-fired power plants (CFPP) and replace them with renewable sources.

PT Sarana Multi Infrastruktur (PT SMI), a state-owned enterprise and one of Indonesia’s Direct Access Entities (DAEs) for the Green Climate Fund (GCF), was assigned by the government as the manager of the ETMCP. To capitalize the ETMCP, PT SMI is aiming to mobilize funding from the GCF through the proposed USD 250 Million Climate Finance Facility to Support Energy Transition in Indonesia (“CFF Program”). CFF is a lending facility and technical assistance program to support the expansion of renewable energy projects in frontier, outermost and underdeveloped areas.

In light of this, PT SMI with support from GGGI, has submitted the CFF Concept Note and draft Project Preparation Facility (PPF) application and subsequently, GCF has provided its initial endorsement and feedback. To aid the Funding Proposal development, PT SMI is required to conduct necessary assessment on the Program’s feasibility in parallel with other PPF activities to be implemented.

 

This assignment aims to cater to a critical aspect of the SETM project to support the development of the CFF. The key objective will be to support PT SMI in developing a detailed Funding Proposal through assessment of some key feasibility aspects of the CFF Program. In this regard, there are two (2) critical assessment required to strengthen the Funding Proposal development. These are:

1. Analysis of the currency risk and landscape of hedging facilities in Indonesia; and
2. Assessment to ensure financial sustainability and exit strategies for the CFF.

 

DELIVERABLES AND PAYMENT SCHEDULE

The Global Green Growth Institute (GGGI) requires the services of a qualified expert (hereafter referred to as “the Consultant”) to be the Economic and Financial Analyst for Assessing Feasibility of PT SMI Renewable Energy Financing Facility.  These assessments will be done in parallel with other activities required to support PT SMI in completing the Funding Proposal development.

The Consultant will be responsible for conducting economic and financial feasibility analysis, with following tasks and duties:

1. Activity Management
   1. Participate in inception meeting with GGGI and PT SMI to have the same understanding on the overall target and timeline;
   2. Facilitate discussions and present the result of assessment to the relevant stakeholders, including PT SMI, NDA, GGGI and other related stakeholders such as Ministry of Energy and Mineral Resources, PT PLN, and potential project owners (IPPs) to obtain inputs;
   3. Develop and maintain active coordination, on a daily basis with GGGI and, through GGGI’s auspices, with PT.SMI and the Ministry of Finance as Indonesia National Designated Authority (NDA) of GCF.

 

2. Currency risks assessment

1. Conduct a thorough needs assessment to identify financing gaps to be addressed by the CFF Program;
2. Assess the need of local currency financing for CFF Program;
3. Analyze the currency risks and landscape of hedging facilities in Indonesia;
4. Conduct assessment of the proposed hedging solutions, including comparing the available solution options and its cost implications.

 

3. Financial sustainability assessment

1. Conduct assessment of financial exit strategy, which details how funding received from the GCF will be used in an innovative manner to ensure long-term financial sustainability of the CFF Program’s interventions;
2. Propose mechanisms for financial sustainability that will be further developed and implemented during the Program.

 

The expected deliverable, delivery timeline, and payment schedule are as follow:

No.	Deliverable	Payment Terms	Percentage of Maximum Amount
1	Inception report on the methodology and workplan	1 weeks after signing contract	20%
2	Interim report on the result of currency risks analysis and the result of CFF’s financial sustainability assessment	5 weeks after signing contract	50%
3	Final report on the result of assessment	7 weeks after signing contract	30%

Notes:

• The Consultant to provide his/her own equipment to produce all deliverables.
• The Consultant shall submit the report in electronic versions readable by a Microsoft Office application.
• All outputs must be in English.
• Final deliverable must be approved by GGGI. The Consultant shall consider the comments and necessary revisions proposed to provide a final version of the deliverable in a timely manner

 

Interviews and a writing exercise may be requested. Applicants are required to prepare a brief narrative demonstrating how prior experience and/or education and training address selection criteria factors listed below:

1. Professional Competencies
2. Experiences
3. Technical knowledge
4. Individual Competency

 

SELECTION CRITERIA

1. Professional Competency (10 points): Masters degree or higher in economics, business administration, finance, or other relevant studies;
2. Experience (40 points): At least 8 years of in the field of business management consulting/research, or conducting currency risks and financial analysis. Experience in financing climate change related projects in developing countries is preferred. S/he must have proven experience and track record in conducting currency risks assessment, project structuring, financial analysis, and relevant activities; Having experiences in the design and development of climate change mitigation and adaptation projects, specifically oriented towards obtaining (international) donor funding is preferred.
3. Technical Knowledge (30 points): The incumbent must have extensive knowledge on the landscape of Indonesia’s economic and currency risks. Having knowledge on renewable energy and energy transition in Indonesia and/or other relevant countries is preferred.
4. Individual Competency (20 points): Incumbent should have solid English reporting and writing abilities. S/he must demonstrate strong interpersonal and motivational skills and sensitivity to the local environment as well as the ability to work with minimal supervision.

Maximum Points Available: 100

At GGGI’s discretion, reference checks and interviews may be conducted as part of the evaluation process.

 

Applicants must also include in their application package as follows:

1. A cover letter of no more than 3 pages that demonstrates how the candidate’s qualifications meet the work requirements;
2. A curriculum vitae which, at a minimum, describes education, latest experience and career achievements;
3. Names, current and accurate contract numbers (email and phone) of three professional references that have knowledge of the applicant’s abilities to perform the duties set fort in the solicitation.

 

All of the above information must be included in the application package in order for the package to considered complete.

All application submitted by GGGI website, must be in GGGI Seoul, no later than 25 October, 2024 at 5:00 p.m. Jakarta time (WIB). Applications submitted after the deadline will not be considered Application. Cover Letter, and CV must be sent in English. A consortium, or a firm may not be engaged for the individual consultant assignment. 

Child protection – GGGI is committed to child protection, irrespective of whether any specific area of work involves direct contact with children. GGGI’s Child Protection Policy is written in accordance with the Convention on the Rights of the Child.