State power utility PT PLN is accelerating Indonesia’s clean energy transition through cooperation agreement with the European Union, Germany’s KfW Development Bank, and infrastructure development PT Sarana Multi Infrastruktur (SMI) to develop large-scale renewable pumped storage hydropower projects in North Sumatra and East Java.

As part of the partnership, the EU and KfW are providing technical assistance to prepare feasibility study documents for the Indonesia Sumatra Pumped Storage project in Simalungun, North Sumatra, and the Indonesia Grindulu Pumped Storage project in Pacitan, East Java.

The total funding support for project preparation amounts to €6 million (Rp116.6 billion). PLN, PT SMI, and KfW have also signed a head of agreement covering technical assistance for the development of both projects, underscoring their shared commitment to speeding up renewable infrastructure development.

These pumped storage projects will play a crucial role in strengthening national electricity reliability while expanding renewable energy capacity within PLN’s grid, in line with the 2025–2034 Electricity Supply Business Plan (RUPTL). PLN’s Director of Finance, Sinthya Roesly, emphasized that renewable energy development is key in accelerating energy transition.

“Energy transition requires support from all stakeholders as well as innovative, sustainable financing schemes. Through collaborations with partners such as the EU, KfW, and PT SMI, PLN can access valuable technical assistance to strengthen its capacity in managing investment portfolios toward a low-carbon economy,” she said on Monday, November 11, 2025.

PLN’s Executive Vice President for Corporate Finance, Maya Rani Puspita, appreciated the financial backing and technical cooperation provided by the EU, KfW, and PT SMI.

“This collaboration is a significant step in accelerating the achievement of Net Zero Emissions by 2060 or sooner. Pumped storage will enhance the flexibility of our national electricity system while supporting large-scale renewable energy integration,” she noted during the Stakeholder Meeting on Friday, November 7, 2025.

The Indonesia Sumatra Pumped Storage project will utilize Lake Toba as the lower reservoir and construct an upper reservoir using a ring-dam system. The project investment is estimated at around US$582 million (Rp9.8 trillion). Meanwhile, the Indonesia Grindulu Pumped Storage project will feature four units with a total capacity of 1,000 MW and an investment ranging from US$1.08 to 1.3 billion. Both projects form part of the EU’s Team Europe financing package worth €3.4 billion, dedicated to supporting Indonesia’s energy transition efforts.

EU Representative to Indonesia, Jerome Pons, reaffirmed the EU’s commitment to supporting Indonesia’s clean energy infrastructure.

“Through the Global Gateway initiative, the EU is committed to helping Indonesia build a modern, resilient, and low-emission power system. Pumped storage is an essential element in balancing renewable-based electricity systems,” he said on November 7, 2025.

Meanwhile, PT SMI’s Director of Public Financing and Project Development, Faris Pranawa, said that the partnership reflects strong cross-institutional synergy.

“PT SMI stands ready to serve as a catalyst for green financing to ensure these pumped storage projects are sustainable. The synergy between PLN, SMI, the EU, and KfW is a real example of global collaboration for Indonesia’s energy future,” he said.

This collaboration also follows the cooperation agreements signed during COP28 Dubai 2023, marking a concrete step by PLN and its international partners in advancing a just and sustainable energy transition aligned with global climate commitments.