PLN Receives Funds from China Development Bank to Accelerate Energy Transition

Illustration (Photo: Doc. Antara)

JAKARTA - PT PLN (Persero) signed a memorandum of understanding (MoU) with China Development Bank (CDB) to accelerate the energy transition.

Through this understanding, CDB confirms its commitment to funding support for PLN's energy transition in Indonesia.

The MoU was signed directly by PLN President Director Darmawan Prasodjo, President of CDB Xiamen Branch, Zeng Liqing and Director of International Cooperation Division of CDB Xiamen Branch, Ruan Xuefeng at CDB head office, Beijing, China, on Monday, October 16.

Darmawan Prasodjo stated that this signing was a concrete manifestation of the strategic bilateral relations that the President of Indonesia, Joko Widodo, and the President of China, Xi Jinping, continue to maintain.

"PLN is ready, and CDB comes as reinforcement. China Development Bank is here as a new force, as a new amplifier, to strengthen energy transition efforts," said Darmawan in a written statement, Thursday, October 19.

He added, in recent years, CDB and PLN have successfully collaborated on various projects. With this new collaboration, it is hoped that the collaboration between the two parties can contribute significantly to climate mitigation efforts in the form of accelerating Indonesia's energy transition.

"The biggest challenge for the energy transition is investment. We have prepared a roadmap, prepared the technology, and built the infrastructure. But without financial support, none of this will work," said Darmawan.

His party is ready to elaborate a comprehensive investment plan, including potential projects where the CDB will be able to explore the potential to provide financing support.

"We will immediately follow up on the details of this potential financing, and also open further discussions to ensure that this high-level MoU between CDB and PLN can actually be translated into concrete action," he said.

Meanwhile, President of CDB Xiamen Branch, Zeng Liqing appreciated the implementation of the MoU between CDB and PLN to accelerate the energy transition in Indonesia.

CDB's commitment to this project is expected to further increase economic cooperation between the two countries.

"On behalf of CDB, I would like to express my gratitude for the attention given by PLN to CDB for some businesses in Indonesia and also the long-term cooperative relationship," said Zeng Liqing.

Zeng Liqing added that his party supports Indonesia's commitment to accelerating the energy transition in order to achieve the emission reduction target by 2060.

"We are encouraging energy progress in Indonesia, hopefully, this MoU will further increase cooperation between CDB and PLN," he concluded.