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AIIB, PT PLN and PT SMI Collaborate to Support Energy Transition in Indonesia

September 30, 2023
in General
AIIB, PT PLN and PT SMI Collaborate to Support Energy Transition in Indonesia
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Sharm El Sheikh, Egypt, Sept 29, 2023 – (ACN Newswire) – PT PLN (Persero), Asian Infrastructure Investment Bank (AIIB) and PT Sarana Multi Infrastruktur (PT SMI) signed partnership documents formalizing their commitment to work together towards achieving Indonesia’s greenhouse gas reduction target. The agreement signed on the sidelines of the 2023 Annual Meeting in Sharm El Sheik, Egypt Tuesday, (26/9) to work together to reduce Indonesia’s greenhouse gas (GHG) emissions. Minister of Finance Indonesia, Sri Mulyani remarked that holistic growth required energy supplies. Responding the need for renewable energy necessitates support and cooperation in providing adequate resources. 

Darmawan Prasodjo, President Director of PLN (middle) hands over a souvenir to Investment Operations Vice President of AIIB Urjit R. Patel, witnessed by Sri Mulyani, Ministry of Finance of Republic of Indonesia.
Darmawan Prasodjo, President Director of PLN (middle) hands over a souvenir to Investment Operations Vice President of AIIB Urjit R. Patel, witnessed by Sri Mulyani, Ministry of Finance of Republic of Indonesia.

“This is necessary for private sector participation in funding the climate agenda. This is a step that we are excited to share with you and AIIB in order to discover solutions. As a cleaner, greener, and leaner financial institution,” Sri Mulyani said. 

President Director of PLN, Darmawan Prasodjo stated that collaboration and partnerships are critical to advancing Indonesia’s energy transformation. As a result, PLN is going to keep maintaining the relationship with diverse stakeholders with the goal to realize the energy transition from conventional to new, renewable, and sustainable energy. 

“Of course, financial support is crucial for accelerating Indonesia’s energy transition. This partnership is certain to reflect PLN’s objective of boosting the share of renewable energy in Indonesia’s energy mix,” mentioned Darmawan. 

Darmawan stated that over the previous 3,5 years, PLN has transformed into a greener electricity provider based on new renewable energy (NRE). The corporation began by developing a greener Electric Power Supply Business Plan and cancelling as much as 13,3 Gigawatt (GW) of coal-based power plants from 2019 – 2028 electricity plan. Aside from that, PLN’s entire commitment to the energy transition is continuing with the planning of the national power plan, which includes 51,6% of NRE power generation. 

PLN continues to innovate and do various breakthroughs to develop NRE up to 75% in 2040. “In addition, we are committed to executing the Net Zero Emissions target by the year 2060, PLN is now focusing not only on providing electricity but also on the environment,” Darmawan explained.

According to AIIB President Jin Liqun, the goal of this partnership is to help Indonesia transition to sustainable development and solve climate change challenges. Jin Liqun believes that this collaboration will push Indonesia to become a leader in the region’s energy transition from fossil-based to new renewable energy. 

“This is a crucial decade for climate change action. By collaborating with major energy players in Indonesia, AIIB intends to unlock and mobilize additional capital to increase access to environmentally friendly energy in Southeast Asia’s largest economy,” Jin Liqun said. 

He stated that the AIIB intends to provide long-term finance to assist the Indonesian government in implementing the transition to low-carbon energy. This funding is intended to supplement existing national and multinational efforts, such as the cooperation with JET-P, while pushing Indonesia to pursue a complete and integrated energy transition strategy.

Furthermore, following the signature of the partnership agreement, AIIB, PLN, and SMI will investigate potential for project preparation, knowledge exchange, capacity building, and technical assistance in the sphere of energy transition.

“By leveraging each other’s technical expertise and financial resources, the three institutions are committed to accelerating the implementation of environmentally friendly energy technologies and contributing to a greener and more sustainable future for Indonesia and the rest of the world,” Jin Liqun said.

-Antara

Topic: Press release summary


Source: PT PLN (Persero)

Sectors: Environment, ESG, Alternative Energy

http://www.acnnewswire.com

From the Asia Corporate News Network

Copyright © 2023 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.

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