Arkora Hydro lands $39 million loan days after solar credit deal
What's the deal? PT Arkora HydroDealroom has a profile for this one. Try Dealroom → (ARKO), through its subsidiary PT Nosu HydroDealroom has a profile for this one. Try Dealroom →, has signed a $38.79 million financing agreement — US$45.4M — with state-owned lender PT Sarana Multi Infrastruktur (SMI)Dealroom has a profile for this one. Try Dealroom →. The Jakarta-listed company will use the facility to build the 20MW Pongbembe hydropower plant in Tana Toraja, South Sulawesi.
Why now? The deal, signed on September 25, 2026, comes just one day after ARKO secured a separate $9.8 million credit facility from SMI to finance solar projects in Batam and Riau. Two loans from the same lender within days signal a rapid financing push from the same backer.
What's the endgame? Pongbembe is a run-of-river plant and ARKO's largest project to date; its other hydropower sites range from 5.4MW to 10MW. Corporate secretary Ricky Hartono said the agreement would have "a positive impact on the company's operations, financial condition and business continuity."
What could go wrong? The loan exceeds 20% of ARKO's equity, which stood at US$36M as of June 30, 2026, classifying it as a material transaction. The company carried US$77.5M in liabilities against US$113.3M in total assets, with cash and equivalents of just US$4.38M.
The signal: ARKO's back-to-back deals point to state financing filling the gap for Indonesia's renewable energy buildout, where thin corporate balance sheets lean on institutions like SMI to fund capacity growth.
Read more: idnfinancials.com
Image credit: ResoluteSupportMedia
