JAKARTA - Danantara Indonesia through Danantara Investment Management (DIM) will invest in a renewable energy-based (EBT) power plant project developed by PT Perusahaan Listrik Negara (Persero) or PLN.
The commitment began with the signing of a Head of Agreement (HoA) between Danantara Pandu Sjahrir's Chief Investment Officer (CIO) and PLN President Director Darmawan Prasodjo.
CIO Danantara Pandu Sjahrir said this cooperation can play an important role in Indonesia's goal of achieving energy self-sufficiency and addressing the increasingly urgent climate change conditions.
Furthermore, Pandu said that EBT is a key sector in ensuring a healthier, cleaner, and sustainable energy system.
"The signing of this HoA is an initial milestone in exploring the need for large strategic investments, encouraging the development of reliable EBT, and strengthening Indonesia's position in energy self-sufficiency, green transformation, and addressing the conditions of climate change that we are experiencing together," said CIO Danantara Indonesia, Pandu Sjahrir in an official statement, Monday, December 22.
The signing of the HoA is the initial stage of this cooperation. Regarding the details of the form and structure of the investment will be announced in due course in accordance with applicable laws and regulations as well as the results of the due diligence process by the parties.
Meanwhile, the value of the investment has not been announced. However, PLN estimates that the total investment needed reaches Rp. 600 trillion or equivalent to 36 billion US dollars (USD) to increase the capacity of power plants to 20 gigawatt (GW).
In the power supply business plan (RUPTL), it has been determined that the plan to add new power plant capacity of 70 GW, with about 76 percent of which comes from EBT.
Where through this cooperation, Danantara Indonesia and PLN will combine investment capabilities and operational expertise in the electricity sector, so that the achievement of national renewable energy targets can be driven more optimally.
Pandu said, Danantara Indonesia not only provides financing, but also plays an active role in identifying and helping to overcome various development challenges of projects, providing access to competitive capital, and supporting the creation of green jobs.
"With this approach, we want to ensure that the development of EBT can run more structured, timely, and integrated with the needs of the national electricity system," he said.
Meanwhile, PLN President Director Darmawan Prasodjo said the energy transition requires close collaboration and sustainable financing support.
According to Darmawan, energy transition cannot be done alone. Strong collaboration and solid and sustainable financing support are needed.
"The presence of Danantara Indonesia strengthens PLN's steps in developing renewable energy in a more structured manner, while ensuring that green projects listed in the RUPTL can run on time and provide long-term benefits for the community and the national electricity system," said Darmawan.
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