PT Perusahaan Listrik Negara (Persero) (PLN) signed a financing Memorandum of Understanding (MoU) with the German development bank Kredianstalt f\"ur Wiederaufbau (KfW) to accelerate the energy transition in Indonesia.
This signing was taken as a form of financial support to encourage the transformation of the energy sector valued at EUR 665 million or IDR 10.7 trillion.
Present at the signing of the MoU were PLN Finance Director Sinthya Roesly, KfW Group Chief Financial Officer (CFO) Bernd Loewen, KfW Group Chief Risk Officer (CRO) Dr. Stefan Pei Badhi, and German Ambassador to Indonesia Ina Lepel.
PLN Finance Director Sinthya Roesly said this financing support was important to accelerate the energy transition program. One of them is to reduce greenhouse gas (GHG) emissions by 29 percent by 2030 and achieve Net Zero Emission (NZE) by 2060.
"I think this support is very important for us, of course all of this is done to support the acceleration of the energy transition in Indonesia. This collaboration between PLN and KfW from Germany has lasted 42 years and this is PLN's commitment to increase the portion of renewable energy to the energy mix," said Sinthya in an official statement, Wednesday, March 1.
Sinthya said the financing support in this agreement includes projects and programs aimed at increasing renewable energy capacity such as solar, wind, water, geothermal, to increasing transmission and distribution networks, as well as institutional support for PLN.
Bernd Loewen as KfW Group's Chief Financial Officer (CFO) explained, KfW Bank is committed to supporting PLN to achieve Net Zero Emission (NZE) by 2060 or sooner.
"Together with PLN, KfW has established a good partnership. Cooperating in the decarbonization of the energy sector will be one of KfW's main focuses in the coming decades, we hope this support will make PLN more focused. We support Indonesia to develop the energy sector in a sustainable and climate-friendly manner to secure long-term and cost-effective electricity supplies for the entire population," explained Loewen.
Loewen further revealed that this collaboration does not only have an impact on Indonesia and PLN. According to him, this cooperation has an impact on the economies around the world, including the German economy.
He added that Germany strongly supports PLN's steps in the energy transition. He considered that in the energy transition process collaboration was needed so that the same pattern could be adopted with the state and other parties.
"This collaboration is a new milestone. We support Indonesia's steps in achieving the implementation of the energy transition, also because we want to emulate this partnership model, so that more countries register," concluded Loewen.
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