PLN Achieves Funding For World Bank Worth 581.5 Million US Dollars

Illustration. (Photo: Doc. Antara)

JAKARTA - PT PLN (Persero) conducted a funding collaboration with the World Bank, Canada Clean Energy & Forest Climate Facility and Clean Technology Fund amounting to US $ 581.5 million.

PLN President Director Darmawan Prasodjo explained that this funding aims to support increased access to electrification in Indonesia, the company's energy transition program and digitization marked by the signing of a grant scheme and direct loan agreement with Sovereign Guarantee, entitled the Indonesia Sustainable Lead-cost Electrification-1 (ISLE-1) Program. The ISLE-1 program is a program-based loan in the context of World Bank and Partner Development support for increased access to electrification, increased grid readiness for recent energy integration (EBT) or renewable energy and increased operational capacity of PLN information technology.

The preparation of this program also received technical assistance and funding from the Sustainable Renewables Risk Mitigation Initiative (SRMI) managed by the Energy Sector Management Assistance Program (ESMAP). This program will also finance corporations for increasing the new renewable energy mix, reducing generating costs, and strengthening PLN's financial and operational capacity. ISLE-1 focuses on two regions, namely Maluku and Nusa Tenggara, because both regions have low electrification rates and high average electricity generating costs," said Darmawan, Thursday, June 13. PLN admits that the energy transition cannot run alone. As an energy transition locomotive, PLN continues to build collaboration with various parties to find solutions to existing challenges. Energy transition cannot be carried out in an atmosphere of loneliness, because there are technical, strategic, operational, and funding challenges. PLN has mapped all these challenges so that every challenge can be overcome, can be mitigated, and can be managed in order to continue to advance and achieve energy transition missions," said Darmawan. World Bank Director for Indonesia and Timor-Leste Turk said, the World Bank is ready to support the commitment of the Indonesian Government to achieve 100 percent electrification and acceleration of EBT. This funding is expected to create a balance between the network investment needed with large electricity demand, especially regions in the Eastern Islands.

“World Bank siap mendukung komitmen Pemerintah Indonesia untuk mencapai 100 persen elektrifikasi. Tingkat elektrifikasi rumah tangga yang lebih besar, khususnya di Kepulauan Bagian Timur, akan memberikan peluang ekonomi tambahan, terutama bagi perempuan," ujar Turk.Tak hanya elektrifikasi, Turk juga menyebut pendanaan program ISLE-1 juga diperuntukkan untuk mendukung pengembangan EBT di Indonesia."Investasi pada energi terbarukan yang penting untuk menjadikan sektor ini berada pada jalur yang lebih efisien dan berkelanjutan sekaligus meningkatkan keterjangkauan dan keandalan," ujarnya.