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Energy efficiency is one of Indonesia’s most practical pathways to reduce emissions, improve public services, and optimize public spending. Yet many energy efficiency opportunities remain difficult to finance because project owners often need stronger technical and economic evidence before investment decisions can move forward.
This is why project preparation matters.
PT Sarana Multi Infrastruktur (Persero), an Indonesian State-Owned Enterprise (BUMN) acting as a catalyst for accelerating national development and sustainable infrastructure projects across the country, has formally expressed its appreciation to the Directorate of Energy Conservation, Directorate General of New, Renewable Energy and Energy Conservation, Ministry of Energy and Mineral Resources, for the delivery of technical assistance supporting the planned installation of public street lighting in Surabaya City.
“…Furthermore, the success story in the implementation of this activity is very likely to be replicated in other regional governments..”
PT Sarana Multi Infrastruktur (Persero), in a letter (No. S-321/SMI/DPPPP/0626) dated June 8, 2026, to the Director of Energy Conservation at the Ministry of
Energy and Mineral Resources.
The technical assistance was delivered through the Energy Efficiency and Energy Service Company Investment Incubator Secretariat under Indonesia’s Ministry of Energy and Mineral Resources, where Lestari Advisors serves as a co-operator alongside NIRAS International Consulting, with support from the UK PACT (Partnering for Accelerated Climate Transitions) program. The support produced a final technical and economic assessment for Surabaya’s public street lighting project.
According to PT SMI, the assessment will be used as part of its internal process for the Surabaya regional loan. The public street lighting component represents Rp231.42 billion in planned regional financing for the 2026–2027 period, within a broader regional loan plan of Rp3.16 trillion.
This success story demonstrates how UK PACT technical assistance through NIRAS and Lestari Advisors help bridge the gap between energy efficiency opportunities and investment decisions, because the core problem is rarely about technology but trust in investable business models. By strengthening the technical and economic basis of a project, project preparation can reduce uncertainty, support financing assessment, and help public infrastructure projects move closer to implementation. The potential for replication across hundreds of Indonesian municipalities is limitless, and our story is just a start.
The Surabaya City case offers an important lesson for Indonesia’s wider energy efficiency market. Cities and local governments often face major opportunities to improve public services while reducing energy consumption. However, turning these opportunities into real investments requires more than ambition. They require credible analysis, strong institutional coordination, and clear financing pathways that can translate project ideas into bankable investments. The loan facility from PT SMI also demonstrates how innovative financing mechanisms can help local governments address sustainable infrastructure needs while accelerating the implementation of energy efficiency projects.
PT SMI also noted that the experience from Surabaya City has strong potential to be replicated in other local governments. This is particularly relevant as Indonesia seeks to scale sustainable infrastructure investment beyond national-level projects and into cities, districts, and provinces.
For Lestari Advisors, this recognition reinforces our belief that sustainable finance is built through practical, implementation-oriented work. Research, policy, and advisory support become most valuable when they help institutions make better decisions, unlock financing, and deliver tangible outcomes on the ground.
As the country advances its energy transition, the Surabaya City public street lighting project shows that well-designed technical assistance can play a catalytic role in mobilizing investment—turning technical potential into financing-ready infrastructure.
For more information please contact our Energy Analyst, Fiki R. Salis ([email protected]).