PT PLN (Persero), Indonesia’s state-owned electricity company, has entered into a collaboration with two major Chinese clean energy corporations, the State Grid Corporation of China (SGCC) and Trina Solar China, at the Indonesia-China Business Forum (ICBF).
This partnership aims to advance the development of new and renewable energy (NRE) in Indonesia. PLN and the Chinese corporations will work together on developing a smart grid as the backbone of clean energy electricity in Indonesia.
The PLN-SGCC partnership encompasses collaborative studies on utilizing renewable energy, electric power storage, power grid integration, and smart grid management to enhance the reliability, quality, and cost-effectiveness of the power system.
Darmawan, the President Director of PLN, noted that the collaboration with SGCC is a concrete step toward progress in energy transition.
He expressed hope that this partnership would enable SGCC and PLN to reinforce one another. Together, they aim to construct an environmentally-friendly supergrid transmission route, a smart grid, and expand their collaboration further.
The China-Indonesia Business Forum is part of The Third Belt and Road Forum for International Cooperation (BRF), initiated by the Chinese Chamber of Commerce Committee. The BRF seeks to foster international cooperation, involving extensive consultations, mutually beneficial contributions, open, green, clean, and high-standard cooperation to enhance people’s lives and promote sustainable development.
PLN and Trina Solar to construct largest solar panel factory
PLN, through its subsidiary PLN Indonesia Power Renewables, has entered a joint venture with Trina Solar, Sinar Mas, and Agra Surya Energi to construct Indonesia’s largest solar cell and solar panel factory in Kendal Industrial Zone, Central Java.
“Trina Solar is a leading company with future technologies. Together, we have launched a joint venture to manufacture Solar PV. We will expand capacity and production to supply the large-scale Solar PV market in Indonesia,” said Darmawan.
He further mentioned that the development of the Solar PV manufacturing plant in Kendal demonstrates PLN’s ongoing collaborative spirit. This effort aims to harness Indonesia’s significant solar energy potential, reaching 207 gigawatts.
According to Darmawan, such collaborations are expected to accelerate the ambitious energy transition scenario set by the Indonesian government. This scenario targets that 75% of the additional energy capacity will come from renewable energy, with the remaining 25% from natural gas by 2040.
PLN signs MoUs with several Chinese state-owned enterprises
In addition to the two MoUs witnessed by President Joko ‘Jokowi’ Widodo, PLN has also signed seven other MoUs, including agreements with The Export-Import Bank of China, Sinosure, Bank of China, Industrial and Commercial Bank of China, State Development & Investment Corp. Ltd, Huawei Tech Investment, and China Energy International Group. The total valuation of these collaborations exceeds US$ 54 billion.
In his speech, President Jokowi stated that his visit to Beijing is aimed at strengthening the bilateral relationship between Indonesia and China.
He emphasized three priority issues for discussion in this meeting: boosting exports from Indonesia, increasing investments, and enhancing food security.
