Indonesia Wins Green Funding for Electricity Sector at COP29

REPUBLIKA.CO.ID, BAKU -- The Indonesian Government, through the Special Envoy of the President of the Republic of Indonesia Hashim Djojohadikusumo, succeeded in attracting 1.2 billion euros of green funding for the electricity sector from the Kreditanstalt für Wiederaufbau (KfW) at the 29th Conference of the Parties (COP) in Baku, Azerbaijan, Wednesday (13/11). The funding was used for the development of a number of green electricity infrastructures towards sustainable national energy self-sufficiency.

This agreement is marked by the signing of a Memorandum of Understanding (MoU) between PT PLN (Persero) and for the development of a clean energy project, namely the Hydroelectric Power Plant (PLTA) Pumped Storage and transmission connecting to green plants.

Hashim reiterated that the government is committed to accelerating the energy transition. By bringing collaboration to a global level, the transition to renewable energy is expected to sustain energy self-sufficiency and foster national economic growth. “We have a new strategy for the next five years by achieving economic growth of at least 8 percent on a sustainable basis,” Hashim stressed.

Hashim said that the development of clean energy sources plays a crucial role in improving the competitiveness of the industry. In the next 15 years, Indonesia's renewable energy generation capacity is targeted to grow by 75 percent from total electricity capacity additions of 100 gigawatts (GW).

“We will be a great country that will fulfill the responsibility of safeguarding the future of the environment. We greatly appreciate the international cooperation that has been established as a form of joint efforts to achieve the Net Zero Emissions (NZE) target,” Hashim explained.

PLN President Director Darmawan Prasodjo revealed that fully supports the government's steps in implementing the energy transition. Various collaborations and initiatives have been carried out by PLN to succeed in sustainable electricity projects.

Darmawan said that KfW's involvement in PLN's green projects is expected to attract more international partners to collaborate. This will create a sustainable strategic, technical and investment collaboration in global climate action.

“This collaboration signals PLN's proactive step in expanding international partnerships in increasing sustainable national energy self-sufficiency in line with global climate action,” Darmawan said.

KfW Group Sustainability Officer Jürgen Kern explained that KfW's support to Indonesia is a manifestation of the German state's commitment to supporting international cooperation to achieve green transformation.

Moreover, according to Jürgen, PLN is the center of energy transition in Indonesia. PLN has a strong commitment to greening the energy sector while ensuring reliable access to energy. “Therefore, we believe that Indonesia-Germany can continue to strengthen the partnership in the energy sector. Especially in clean energy projects such as geothermal, water and also transmission. To achieve the NZE's targets, collaboration and good partnerships are needed,” Jürgen said.