Tuesday, July 16, 2024

PLN green energy transition gets financial boost from landmark MoU with Export Finance Australia

Reading Time: 2 minutes
Journalist IBP

Journalist

Mahinda Arkyasa

Editor

Interview

PT PLN (Persero) is exploring green financing cooperation from Export Finance Australia (EFA) to accelerate the energy transition in Indonesia. This exploration was marked by the signing of an MoU between the two.

Darmawan Prasodjo, PLN President Director said this MoU marked the beginning of financing support and increasing the capacity of PLN employees in developing renewable energy projects. He said this support would accelerate PLN’s efforts to reduce greenhouse gas emissions by 29% by 2030 and achieve Net Zero Emissions by 2060.

He further adds that PLN and EFA have the same commitment to providing clean and environmentally friendly energy and this is stated in the agreement to establish close cooperation in accelerating the energy transition in Indonesia.

It is known that PLN needs funds worth US$ 172 billion or around IDR 2,641 trillion to build renewable energy (EBT) power plants until 2040.

“This agreement is very important to support the improvement of renewable energy infrastructure, energy efficiency and the development of green technology in Indonesia in order to achieve net zero emissions (NZE) by 2060,” said Darmawan

John Hopkins, EFA CEO said that the agreement between PLN and EFA would not only bring benefits in reducing carbon emissions to support the energy transition in Indonesia, but could also strengthen the position of Indonesia’s bilateral relations with Australia.

“The signing of this MoU is a concrete step in supporting Indonesia’s energy transition steps and an important milestone in bilateral cooperation between Indonesia and Australia for sustainable energy,” he added.

The agreement marked by the signing of the MoU is a follow-up step to the meeting between Australian Prime Minister Anthony Norman Albanese and President Joko ‘Jokowi’ Widodo.

“We hope to continue working together on financing packages to support operational improvements in reducing emissions and increasing the use of new renewable energy,” said John.

Journalist IBP

Journalist

Mahinda Arkyasa

Editor

 

Interview

SUBSCRIBE NOW
We will provide you with an invoice for your reimbursable expenses.

Free

New to Indonesian market? Read our free articles before subscribing to the premium plan. If you already run your business in Indonesia, make sure to subscribe to the premium subscription so you won’t miss any intelligence & business opportunities.

Premium

$550 USD/Year

or

$45 USD/Month

Cancelation: you can cancel your subscription at any time, by sending us an email inquiry@ibp-media.com

Add keywords to your market watch and receive notification:
Schedule a free consultation with us:

We’ll contact you for confirmation.

FURTHER READING

State-owned construction and investment company PT Pembangunan Perumahan (PP) is set to undertake a significant energy sector project valued at approximately Rp2 trillion (US$123.4 million).
PT Perusahaan Gas Negara (PGN), a gas subholding of State energy company PT Pertamina, is working on several strategic gas pipeline projects, including the Cisem Phase II project in which PGN will synergize with the government to distribute gas from East Java to West Java.
PT Kilang Pertamina Internasional (KPI), a subsidiary of State oil and gas company Pertamina, is inviting investors to join the Green Refinery Cilacap project, which has completed its first phase construction and is moving forward with Phase 2.
Indonesia’s utilization of geothermal energy has reached just 2.4 gigawatts (GW), a mere 10 percent of its total potential of 23.9 GW that industry players call for clearer regulations and incentives from the government to optimize this significant renewable energy resource.
A senior officer with PT Bank Danamon Indonesia (BDMN) reveals that the bank aims for double-digit loan growth in 2024 upon monitoring positive trend of the bank’s lending so far.
French mining company Eramet SA is in discussions with Zhejiang Huayou Cobalt Co (Huayou) to produce nickel for electric vehicle batteries in Indonesia.