Saguling Floating PLTS Receives Funding Of IDR 994.68 Billion From 3 Countries

PLTS illustration (Photo: Antara)

JAKARTA - The Indonesian government officially pocketed funding of 60 million US dollars or equivalent to Rp994.68 billion (exchange rate of Rp. 16,578 per US dollar) from three international partners to build the Saguling Floating Solar Power Plant (PLTS) in West Bandung Regency, West Java.

The funding comes from German development financing institutions (DEG), French development financing institutions (PROPARCO), and the Standard Chartered Bank from England.

"Investment at Saguling Floating PLTS is not just a solar power plant project. This is a symbol of the collaborative spirit between the Government of Indonesia, the international community, and the private sector to accelerate the transition to clean energy while at the same time encouraging inclusive and sustainable economic growth," said Coordinating Minister for Economic Affairs Airlangga Hartarto quoting Antara.

This project is part of the Just Energy Transition Partnership (JETP) partnership which aims to accelerate the clean and environmentally friendly energy transition in Indonesia.

PLTS Terapung Saguling was developed by PLN Indonesia Power with ACWA Power, and has an installed capacity of 92 megawatt peak (MWp).

This project is estimated to be able to reduce carbon emissions by 63,100 tons per year, while increasing national solar power production by 13 percent.

Airlangga expressed his appreciation for the trust of international partners in Indonesia's renewable energy potential.

He emphasized that the government continues to be committed to creating a conducive investment climate through regulatory reform, incentives, and public-private partnerships as part of a strategy towards zero carbon emissions (Net Zero Emission/NZE) by 2060.

"I would like to invite all parties to continue to strengthen collaboration, continue to innovate, and maintain the spirit of optimism in our journey towards a future of clean, sustainable, and fair energy for Indonesia," he said.

Support for this project also came from the Governments of France and the UK. French Ambassador to Indonesia Fabien Penone emphasized that PROPARCO is committed to supporting the development of innovative renewable energy in Indonesia.

Meanwhile, British Ambassador to Indonesia Dominic Jermey said that Indonesia's energy transition shows positive development and is strong evidence of bilateral commitment in JETP's strategic partnership.

About 20 other JETP projects are currently in process, with a value of around USD 5 billion per member country each. The UK is also waiting for the signing of a $1 billion JETP guarantee in the next few weeks, as a form of support for Indonesia's energy transition target," he explained.

The governments of Canada, Denmark, France, Germany, Italy, Japan, Norway, and the European Union form IPG which are committed to supporting JETP Indonesia through development funding.

Furthermore, the IPG is working with The Glasgow Financial Alliance for Net Zero (GFANZ) which is a global coalition of leading financial institutions.

In early 2025, Germany took over the leadership of IPG at JETP Indonesia with Japan.

Through a working group formed by GFANZ, a leading financial institution such as Standard Chartered, committed to mobilizing private funding and facilitating investment to support Indonesia's energy transition along with the IPG.

The IPG collaboration and a number of financial institutions will mobilize funding of up to 20 billion US dollars.