The Indonesian government, through the Special Envoy of the President of the Republic of Indonesia, Hashim Djojohadikusumo, successfully secured €1.2 billion in green funding for the electricity sector from Kreditanstalt für Wiederaufbau (KfW) during the Conference of the Parties (COP) 29 in Baku, Azerbaijan.
The funding will be used to develop various green electricity infrastructures to achieve sustainable national energy self-sufficiency.
This agreement was marked by the signing of a Memorandum of Understanding (MoU) between PT PLN (Persero) and KfW for the development of clean energy projects, including a Pumped Storage Hydropower Plant and transmission lines connecting to green power plants.
Hashim emphasized the government’s commitment to accelerating the energy transition. By fostering global collaboration, the shift to renewable energy is expected to support energy self-sufficiency and drive national economic growth.
“We have implemented a new strategy for the next five years to achieve sustainable economic growth of at least 8%,” Hashim said in a written statement on Friday (11/15/2024).
Hashim stated that developing clean energy sources plays a crucial role in enhancing industrial competitiveness. Over the next 15 years, Indonesia’s renewable energy capacity is targeted to increase by 75% of the total electricity capacity addition of 100 gigawatts (GW).
“We will become a major country fulfilling our responsibility to safeguard the future of the environment. We deeply appreciate the international cooperation established as part of joint efforts to achieve Net Zero Emissions (NZE) targets,” Hashim explained.
PLN President Director Darmawan Prasodjo expressed full support for the government’s efforts to carry out the energy transition. PLN has implemented various collaborations and initiatives to succeed in sustainable electricity projects.
Darmawan stated that KfW’s involvement in PLN’s green projects is expected to attract more international partners to collaborate. This would create a strategic, technical, and investment partnership that is sustainable in global climate action.
“This collaboration signifies PLN’s proactive steps in expanding international partnerships to enhance sustainable national energy self-sufficiency in line with global climate action,” said Darmawan.
KfW Group Sustainability Officer Jürgen Kern explained that KfW’s support for Indonesia reflects Germany’s commitment to fostering international cooperation to achieve a green transformation.
Moreover, according to Jürgen, PLN serves as the center of the energy transition in Indonesia. PLN is strongly committed to greening the energy sector while ensuring reliable energy access.
“Therefore, we believe that Indonesia and Germany can continue to strengthen their energy sector partnership, especially in clean energy projects such as geothermal, hydropower, and transmission. Achieving NZE targets requires strong collaboration and partnerships,” Jürgen concluded.
