PLN Indonesia Power (PLN IP) has secured green financing from France’s development finance institution Proparco and Standard Chartered Bank for the construction of the 92 Megawatt-peak (MWp) Saguling Floating Solar Power Plant (PLTS) in West Java.
The financial agreement was signed by PT Indonesia ACWA Tenaga Saguling, a joint venture between PLN IP and Saudi-based ACWA Power. The funding consortium includes three key financial institutions from Europe: Deutsche Investitions- und Entwicklungsgesellschaft (DEG) from Germany, Proparco from France, and Standard Chartered Bank from the United Kingdom.
Coordinating Minister for the Economy, Airlangga Hartarto, emphasized that the financing marks a milestone in sustainable development. The funding will cover the plant’s development, construction, and operations phases.
"This represents a symbol of collaborative spirit between the Indonesian government, the international community, and the private sector in accelerating the shift to clean energy, while also fostering inclusive and sustainable economic growth," Airlangga said as quoted in a statement on Wednesday, May 7, 2025.
PLN Indonesia Power President Director, Edwin Nugraha Putra, noted that the Saguling Floating Solar Power Plant will increase Indonesia’s solar energy capacity by approximately 13 percent. He highlighted the country’s immense solar potential, which is estimated at 3,295 Gigawatts (GW).
“With the operation of the Saguling PLTS, we can enhance the utilization of solar energy as a power source,” Edwin said on Wednesday, May 7, 2025.
He also added that the plant is expected to significantly contribute to emission reductions, cutting carbon emissions from Indonesia’s power system by at least 63,100 tons annually.
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