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JAKARTA PT PLN (Persero) signed a cooperation agreement related to financing with the Asian Infrastructure Investment Bank or the Asian Infrastructure Investment Bank (AIIB) and PT SMI (Persero). This signing aims to support the energy transition in Indonesia.

PLN President Director Darmawan Prasodjo said collaboration and partnership are important keys to accelerating the energy transition in Indonesia. Therefore, PLN will continue to strengthen collaboration with various parties in order to realize the energy shift from fossil-based to new and renewable energy.

"Financing support is certainly very important to support the acceleration of the energy transition in Indonesia. This partnership can certainly realize PLN's commitment to increase the portion of renewable energy to the energy mix in Indonesia," said Darmawan, Wednesday, September 27.

Darmawan said, over the past 3.5 years PLN has been reforming in building greener electricity based on new and renewable energy (EBT). This started with the company designing a greener Electricity Supply Business Plan (RUPTL) and canceling the plan 13.3 Gigawatt (GW) of the coal-based PLTU.

In addition, PLN's full commitment to energy transition is also realized by planning a national electricity RUPTL with an addition of 51.6 percent of power plants from EBT. PLN continues to innovate in accelerating the development of EBT in the country by up to 75 percent or 60 GW in 2040 of the total electricity capacity.

"This effort is in line with the Net Zero Emissions target in 2060. PLN is now not only focused on providing electrical energy but also focusing on the environment," said Darmawan.

Meanwhile, AIIB President Jin Liqun said this partnership was to facilitate Indonesia's transition for sustainable development and overcome the challenges of climate change. Jin Liqun hopes that this partnership can encourage Indonesia to become the leading country in leading the energy transition from fossil-based to new and renewable energy in the region.

This is an important decade for climate change actions. Through cooperation with the main energy players in Indonesia, AIIB plans to open and mobilize additional capital to increase access to environmentally friendly energy to the country with the largest economy in Southeast Asia," said Jin Liqun.

He said AIIB plans to provide long-term funding to support the efforts of the Government of Indonesia in operationalizing the transition to low-carbon energy. This financing is considered to complement existing national and multilateral efforts, such as partnerships with JETP as well as encouraging a comprehensive and integrated energy transition approach in Indonesia.

Furthermore, after the signing of the partnership, AIIB, PLN and SMI will explore opportunities for project preparation, knowledge sharing, capacity building, and technical assistance in the field of energy transition.

"By utilizing technical expertise and financial resources, the three institutions are committed to accelerating the application of environmentally friendly energy technology and contributing to a greener and more sustainable future for Indonesia and the world," said Jin Liqun.


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