• €1.2 Billion Agreement Signed: Indonesia’s PT PLN (Persero) and Germany’s KfW signed an MoU to fund the development of a Pumped Storage Hydropower Plant (PLTA) and related transmission projects, marking a major step toward Indonesia’s renewable energy goals.
• Accelerating Energy Transition: The partnership supports Indonesia’s strategy to increase renewable energy capacity by 75% over 15 years, contributing to its Net Zero Emissions (NZE) target.
• Global Collaboration for Sustainability: The deal emphasizes Indonesia’s commitment to international cooperation and Germany’s support for advancing clean energy transformation in the region.

A Milestone for Green Energy

At the COP29 World Climate Conference in Baku, Azerbaijan, Indonesia announced a €1.2 billion green funding agreement with German state development bank Kreditanstalt für Wiederaufbau (KfW). The partnership was solidified through a Memorandum of Understanding (MoU) signed by PT PLN (Persero) and KfW, focusing on the development of the Pumped Storage Hydroelectric Power Plant (PLTA) and the transmission network to connect green power plants.

Themed “Leading the Charge: Strategic Partnership to Catalyze Decarbonization,” the MoU highlights Indonesia’s strategy to achieve energy self-sufficiency while supporting national economic growth.

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Driving Economic and Environmental Goals

Special Presidential Envoy Hashim Djojohadikusumo underlined Indonesia’s dedication to renewable energy, stating:
“We have developed a new strategy over the next five years to achieve a minimum of 8% sustainable economic growth.”

He added that clean energy projects are essential to improving industrial competitiveness:
“We will be a major country fulfilling our responsibility to protect the environment’s future. We deeply appreciate the established international cooperation as a joint effort toward reaching the Net Zero Emissions (NZE) target.”

Collaborative Efforts to Advance Renewable Energy

PLN President Director Darmawan Prasodjo reiterated PLN’s commitment to sustainability through international partnerships, emphasizing KfW’s role in attracting additional global collaborators.
“This collaboration signifies PLN’s proactive steps in expanding international partnerships to enhance national energy self-sufficiency in line with global climate actions,” Darmawan stated.

KfW’s Sustainability Officer Jurgen Kern echoed this sentiment, emphasizing Germany’s commitment to green transformation.
“PLN is strongly committed to greening the energy sector while ensuring reliable energy access. Achieving the NZE target requires solid collaboration and partnership,” Kern explained.

A Step Toward Energy Independence

This strategic partnership not only accelerates Indonesia’s renewable energy capacity but also strengthens global efforts to combat climate change, setting a benchmark for international cooperation in sustainability.

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