Sunday, December 10, 2023

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

Reading Time: 2 minutes
Journalist IBP


Mahinda Arkyasa



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


Mahinda Arkyasa




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