NTBE is a subsidiary of publicly listed PT TBS Energi Utama.

SMI financing and investment director Sylvi J. Gani, NTBE president director Mahzuri and NTBE director Pria Fardio Syaiful Dinar signed the agreement at the SMI office in Sahid Sudirman Center, South Jakarta on Monday.

The project, the Tembesi Solar Power Plant (PLTS), is the second-largest floating solar panel project after the Cirata PLTS. The Tembesi PLTS is expected to produce 46 megawatts (MW) of peak energy, supporting the nation’s clean energy plan.

The Tembesi solar power plant is the largest renewable energy project in Riau Islands province.

"The climate crisis phenomenon has not escaped PT SMI's attention, [and we are] contributing to reducing carbon emissions through the financing of renewable energy projects," SMI president director Reynaldi Hermansjah said on Tuesday, as quoted by the Antara news agency.

He hoped that the solar power plant could accommodate energy needs in Riau Islands and attract foreign investors to Batam, thereby helping to boost the local economy.

The Tembesi PLTS is currently under construction, with a target for full commercial operation to start between the second and third quarters of 2025.

With this project, SMI's financing in the electricity sector has contributed to an increase in electricity capacity of 7.7 gigawatts (GW), which is used to power 5.9 million households, equivalent to 23.6 million people.

Of this 7.7 GW capacity, 2 GW comes from renewable energy sources, including hydro, mini-hydro, solar, wind, biomass and geothermal power.

SMI’s renewable energy projects have cut 1.55 million tonnes of carbon emissions per year.