Indonesia has received €1.2 billion (approximately Rp20.15 trillion) in green financing from Germany’s Kreditanstalt für Wiederaufbau (KfW) for sustainable energy infrastructure development.
The funding will support projects aimed at achieving national energy self-sufficiency through renewable energy.
The agreement was formalized through a memorandum of understanding (MoU) between State power utility company PT PLN and KfW during the COP29 climate conference in Baku, Azerbaijan, on Wednesday, November 13, 2024.
The initiative focuses on green energy projects such as hydroelectric power plants (pumped storage) and transmission systems connecting renewable power sources.
Hashim Djojohadikusumo, Special Envoy of the President of Indonesia and head of the delegation at COP29, told the climate conference of Indonesia’s commitment to accelerating its energy transition.
By fostering global collaboration, renewable energy adoption aims to bolster national energy independence and economic growth.
“We have outlined a new strategy for the next five years to achieve at least 8 percent sustainable economic growth,” Hashim said in a statement on Friday, November 15, 2024.
He emphasized that renewable energy development is crucial to enhancing industrial competitiveness.
Over the next 15 years, Indonesia aims to increase its renewable energy capacity by 75 percent of the planned 100 gigawatts (GW) total power capacity expansion.
PLN’s green energy initiatives
PLN CEO Darmawan Prasodjo expressed the company’s full support for the government’s energy transition agenda. PLN has implemented various collaborations and initiatives to advance sustainable electricity projects.
“The involvement of KfW in PLN’s green projects is expected to attract more international partners, creating strategic, technical, and sustainable investment collaborations in global climate action,” Darmawan said, on Friday, November 15, 2024.
Green transformation
Jürgen Kern, Sustainability Officer at KfW Group, highlighted the importance of the partnership as part of Germany’s commitment to green transformation.
He praised PLN’s central role in Indonesia’s energy transition and its strong commitment to sustainable energy.
“We are confident that the Indonesia-Germany partnership will continue to grow, particularly in clean energy projects such as geothermal, hydroelectric, and transmission systems. Achieving net-zero emissions (NZE) requires strong collaboration and partnerships,” Kern said.
