Thursday, June 20, 2024

Indonesia-Japan collaborates on Joint Crediting Mechanism (JCM) model project providing solar panels

Reading Time: 2 minutes
Journalist IBP


Mahinda Arkyasa



A collaboration between the Japanese and Indonesian governments, under the Joint Crediting Mechanism (JCM) Model Project scheme, provides green energy ventures giving companies that participate do not need to bear investment cost.

The JCM Model Project is a funding scheme facilitated by the Japanese Ministry of the Environment (MOEJ) in partnership with the Indonesian government through the JCM program. It offers up to a 50% subsidy for the total project investment, promoting low-carbon methods and technologies proposed by participants.

Eligible candidates for selection include private enterprises, state-owned enterprises, and any other entities, determined through a joint selection process by both the Indonesian and Japanese governments. One Indonesian company such as Alkindo Naratama receives subsidy in the form of a solar panel construction to boost clean energy production and cut carbon emissions.

PT Alkindo Naratama Tbk (ALDO) is currently undertaking the construction of a solar panel installation with a capacity of 3,033.3 megawatt peak (MWp) at one of its subsidiaries, PT Eco Paper Indonesia.

This initiative is expected to generate 96,720 megawatt hours (MWh) of electricity over a 25-year span while reducing carbon emissions by 75,906 tons of CO2, equivalent to planting approximately 3.03 million trees.

The installation of solar panels not only provides Eco Paper with access to affordable renewable energy but also positively impacts the company’s electricity bill reduction.

“We hope that the solar power plant we have started constructing will be operational by the end of 2023,” stated Sutanto, CEO of PT Alkindo Naratama Tbk, on October 19, 2023.

The solar panel construction signifies ALDO’s commitment to reducing greenhouse gas emissions by 2,182 tons of CO2 annually. This paper and chemical business emitter also supports the government’s efforts to reach a 23% renewable energy usage target by 2025 and achieve net-zero emissions by 2060.

According to Sutanto, the introduction of solar panels brings several advantages, from reduced operational costs to less reliance on expensive and finite fossil fuel resources. From an environmental sustainability perspective, these solar panels will contribute to a decrease in greenhouse gas emissions and carbon footprints.

“In the long run, the presence of solar panels will help create energy price stability, reducing the risk of fluctuations in conventional energy prices,” Sutanto added.

Journalist IBP


Mahinda Arkyasa




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