RI Pockets IDR 20.15 Trillion Green Funding For The Electricity Sector

Illustration (Photo: Doc Antara)

JAKARTA - Indonesia has a green funding of 1.2 billion euros or around Rp. 20.15 trillion for the electricity sector from Creditstalt f\"ur Wiederaufbau (KfW) on the sidelines of the COP29 climate conference in Baku, Azerbaijan, Wednesday, November 13.

The funding will be used for the development of a number of green electricity infrastructures leading to sustainable national energy self-sufficiency.

"The agreement was marked by the signing of a memorandum of understanding (MoU) between PT PLN (Persero) and KfW for the development of a clean energy project, namely a pumped storage and transmission power plant that connects to green plants," said a press release received in Jakarta, Friday.

The Indonesian Presidential Special Envoy Hashim Djojohadikusumo, who led the Indonesian delegation at COP29, emphasized that Indonesia is committed to accelerating the energy transition. By garnering collaboration to the global level, the transition to renewable energy is expected to be able to support energy self-sufficiency and encourage national economic growth.

"We have a new strategy for the next five years by achieving economic growth of at least eight percent sustainably," he said as quoted by ANTARA, Friday, November 15.

Hashim said that the development of clean energy sources plays a crucial role in increasing industrial competitiveness. In the next 15 years, Indonesia's renewable energy generation capacity is targeted to increase by 75 percent from the total increase in electricity capacity of 100 gigawatts (GW).

"We will be a big country that will fulfill our responsibility in maintaining the future of the environment. We really appreciate the international cooperation that has been established as a form of joint effort to achieve the net zero emissions target," he said.

PLN President Director Darmawan Prasodjo said that PLN fully supports the government's move to carry out the energy transition. He said that various collaborations and initiatives had been carried out by PLN to make sustainable electrical projects a success.

Darmawan said that KfW's involvement in PLN's green projects is expected to be able to attract more international partners to collaborate to realize a sustainable strategy, technical and investment collaboration in global climate actions.

"This collaboration marks PLN's proactive step in expanding international partnerships in increasing sustainable national energy self-sufficiency in line with global climate action," said Darmawan.

KfW Group's Sustainability Officer J\"urgen Kern explained that KfW's support for Indonesia is a form of Germany's commitment to supporting international cooperation to achieve a green transformation.

Moreover, said J\"urgen, PLN is the center of energy transition in Indonesia and has a strong commitment to greening the energy sector while ensuring reliable access to energy.

"We believe that Indonesia-Germany can continue to strengthen partnerships in the energy sector, especially in clean energy projects such as geothermal, water and transmission. To achieve the NZE target, good collaboration and partnership are needed," said J\"urgen.