Indonesian state-owned electricity company PT PLN (Persero) signed a memorandum of understanding (MoU) with the China Development Bank (CDB) to expedite the energy transition. Under this agreement, CDB reaffirms its commitment to provide financial support for PLN’s energy transition initiatives in Indonesia.
The MoU was directly signed by PLN’s CEO, Darmawan Prasodjo, the President of CDB’s Xiamen Branch, Zeng Liqing, and the Director of the International Cooperation Division of CDB’s Xiamen Branch, Ruan Xuefeng, at CDB’s headquarters in Beijing, China, on Monday October 6, 2023.
This agreement signifies a commitment and exploration of corporate financing, project funding, and other financial solutions related to the energy transition. Additionally, it supports the enhancement of PLN employees’ capabilities in developing renewable energy, as outlined in the MoU.
Darmawan expressed PLN’s continuous efforts to accelerate the energy transition in line with Indonesia’s greenhouse gas reduction targets, as part of the Nationally Determined Contribution (NDC). NDC represents a nationally determined contribution that focuses on climate change mitigation, including greenhouse gas emission reduction targets.
“PLN is ready, and CDB comes as reinforcement. China Development Bank is here as a new force, a new enabler to strengthen our energy transition efforts,” Darmawan stated in a press release on Wednesday, October 18, 2023.
Accelerating energy transition
In recent years, CDB and PLN have successfully collaborated on various projects. With this new partnership, both sides hope their collaboration can significantly contribute to climate mitigation efforts through the acceleration of Indonesia’s energy transition.
“The most significant challenge in the energy transition is investment. We have laid out a roadmap, prepared technology, and built infrastructure. However, without financial support, none of this can materialize,” Darmawan emphasized.
Meanwhile, Zeng Liqing, the President of CDB Xiamen Branch, commended the MoU between CDB and PLN for accelerating the energy transition in Indonesia. CDB’s commitment to this project is expected to enhance economic cooperation between the two nations.
“On behalf of CDB, I want to express my gratitude for PLN’s attention to CDB’s involvement in some businesses in Indonesia and our long-term cooperation,” Zeng Liqing stated.
He underscored CDB’s support for Indonesia’s commitment to accelerating the energy transition to achieve emission reduction targets by 2060. “We encourage energy progress in Indonesia, and we hope this MoU will further enhance the collaboration between CDB and PLN,” he added.