BAKU, Azerbaijan,Nov. 25, 2024/PRNewswire/ -- The Government ofIndonesia, represented by the Special Envoy of the President of the Republic of Indonesia, Hashim Djojohadikusumo, has attractedEUR 1.2 billionin green financing for the power sector from Kreditanstalt für Wiederaufbau (KfW). This agreement was finalized during the 29th Conference of the Parties(COP29)inBaku, Azerbaijan, on Wednesday (11/13). The funding will be allocated to the development of various green power infrastructures, supporting the nation's sustainable energy transition.
The partnership was formalized by the signing of a Memorandum of Understanding (MoU) between PT PLN (Persero) and KfW. This partnership focuses on developing clean energy projects, specifically Pumped Storage Hydropower Plants and transmission network to connect green power plants.
Hashim Djojohadikusumo emphasized that the government ofIndonesiais committed to reducing carbon emissions through energy transition by fostering collaborations at the global level, the shift towards renewable energy is expected to support energy self-sufficiency and drive national economic growth. He affirmed,"We have developed a new strategy over the next five years to achieve a minimum of 8% sustainable economic growth."
He underscored that the development of clean energy sources is crucial for enhancingIndonesia'sindustrial competitiveness. Over the next 15 years, the country targets a 75 percent increase in renewable energy generation capacity, contributing to the planned addition of 100 gigawatts (GW) of electricity capacity."As a major nation, we are committed to fulfilling our responsibility to protect the future of our environment. We deeply appreciate the established international cooperation, which is a testament of our collective efforts in achieving the Net Zero Emissions (NZE) target,"
Darmawan Prasodjo, President Director of PT PLN (Persero) ("PLN"), expressed the corporation's firm support towards the government's initiatives in advancing energy transition. Various collaborations and initiatives have been implemented by PLN to ensure the success of sustainable electricity projects.
He noted that KfW's involvement in PLN's green projects is expected to drive more international partners to collaborate, cultivating a synergy of sustainable strategic, technical, and investment collaboration to accelerate global climate action."This collaboration signifies PLN's proactive steps in expanding international partnerships to enhance national energy self-sufficiency in line with global climate actions."
Jürgen Kern, Sustainability Officer of KfW Group, explained that KfW's support forIndonesiademonstratesGermany'scommitment to international cooperation for green transformation. Furthermore, Jürgen highlighted that PLN is at the center ofIndonesia'senergy transition, underscoring the company's unwavering support to greening the energy sector, while maintaining reliable energy access.
"Therefore, we believe thatIndonesiaandGermanycan continue to strengthen partnership in the energy sector, moreover, in clean energy projects, like renewable energy and transmission. Achieving the NZE target requires robust collaboration and partnership," he concluded.
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SOURCE PT PLN (Persero)