ISEW 2024: Celebration Of Technical And Financial Cooperation Representatives Of The German Government Through GIZ And KfW With PLN

JAKARTA - Indonesia continues to accelerate the energy transition process to achieve the net zero emission target by 2060 or sooner. On the second day of Indonesia Sustainable Energy Week (ISEW) 2024, an important celebration was held marking the continuation of the long journey of cooperation between Indonesia and Germany in the electricity sector, especially in the development of renewable energy.

This event includes signing an MoU update as well as two Grant Agreements between PT PLN (Persero) and German partners, GIZ and KfW.

The collaboration between Germany and Indonesia in sustainable development has been growing for more than four decades. Since then, this collaboration has developed, covering various initiatives, many of which aim to achieve ambitious renewable energy targets in the Indonesian electricity sector.

Since the start of deeper cooperation in the field of electricity in 2016, Indonesia and Germany through GIZ, KfW, and PLN have collaborated on various initiatives to support the energy transition in Indonesia. This collaboration includes financing renewable energy projects, developing transmission networks, distribution, as well as increasing technical capacity and training for PLN staff.

In his remarks, Suroso Isnandar, Director of Risk Management of PT PLN (Persero), said that this collaboration is very valuable for PLN, because it has supported us in an effort to accelerate the energy transition and decarbonization of electricity systems.

"With this collaboration, we are sure that Indonesia can achieve the renewable energy target while still ensuring reliable and affordable electricity supply. Let's work together to support electricity progress from clean energy in Indonesia," he said, in a written statement, Thursday, September 12.

In addition to PLN, GIZ and KfW also made a major contribution in strengthening the energy transition in Indonesia. Lisa Tinschert, Director of the GIZ Indonesia/ASEAN Energy Program, is proud to be collaborating with PLN to accelerate greater integration of renewable energy into Indonesia's electricity system and support in renewable energy projects that provide long-term benefits for the people of Indonesia.

"Energy transition is key to achieving global climate targets and ensuring a fair and sustainable energy supply," said Lisa.

Meanwhile, Burkhard Hinz, Director of KfW in Indonesia, emphasized that KfW has supported various initiatives related to the electricity system in Indonesia for more than four decades.

KfW continues to support PLN and the Government of Indonesia (GoI) to decarbonize and modernize the energy sector in Indonesia and contribute to achieving the JETP target agreed with the International Partner Group. With the signing of today's grant agreement, we hope to continue to participate in steps for a just energy transition," he explained.

The collaboration of technical studies between PLN and GIZ has resulted in various important achievements, including the study of the electricity planning technology-economic in Selayar which supports the realization of the Hybrid Selayar Solar Power Plant (PLTS) owned by PLN which has been operating in 2022. The Hybrid PLTS managed to save operational costs of IDR 16.5 billion per year.

In addition, this collaboration has also trained more than 350 PLN staff related to operations and planning for a more environmentally friendly electricity system.

In the future, KfW and PLN are committed to continuing to strengthen cooperation in the field of clean energy through financial support, implementation of studies, and capacity development for PLN, through various instruments and programs such as the Energy Transition Acceleration Program and Just Energy Transition Partnership.

On the other hand, the MoU update between GIZ and PLN for the next five years, signifies the continuation of a joint commitment to supporting the development of sustainable clean energy in Indonesia.

The celebration event was also witnessed by Jisman P. Hutajulu, the Director General of Electricity at the Ministry of Energy and Mineral Resources, and Taufiq Hidayat Putra, the Director of Electricity, Telecommunications, and Information Technology at Bappenas, who also emphasized the importance of this collaboration in realizing a cleaner and more sustainable energy future in Indonesia.

Second-day sessions also include discussions about energy management in the industrial and building sectors. Speakers from various ministries, private companies, and international organizations discussed the importance of energy efficiency in dealing with regulatory changes and increasing industrial competitiveness

As part of the 30th anniversary of the Indonesian-German energy cooperation, this event strengthens the commitment of the two countries in achieving the target of renewable energy and global decarbonization.