PLN secures €6.5M grant from EU, AFD to accelerate clean energy transition
Published on 13/02/2025 GMT+7 Reading time 3 minutes
State energy utility company PT PLN has received a grant of €6.5 million (Rp110 billion) from the European Union (EU) and the Agence Française de Développement (AFD) in assistance to Indonesia’s energy transition agenda.
This commitment was agreed upon in the launch agenda of the Indonesia Energy Transition Facility (IETF) by the Embassy of France in partnership with the European Union on February 5, 2025.
Darmawan Prasodjo, President Director of PLN, said that this collaboration is a real manifestation of global collaboration in efforts to mitigate the impact of climate change through energy transition.
PLN appreciates AFD and the French Government for this commitment. Through this commitment, PLN's efforts in providing clean and sustainable energy are further strengthened.
"This collaboration signifies the international community's commitment to addressing the global climate change crisis," Darmawan said as quoted in a statement on Wednesday, February 12, 2025.
Sinthya Roesly, PLN Finance Director, said the total commitment through the IETF framework of €6.5 million was allocated by AFD for PLN to support the company's energy transition and decarbonization program towards Net Zero Emission (NZE) target by 2060.
He also said that PLN will utilize this support for, among other things, technical assistance for renewable energy generation and transmission projects, as well as increasing the capacity and supporting institutions for PLN's energy transition program.
The energy transition will not only play a role in reducing carbon emissions, but will also have a broad impact on Indonesia's economic growth.
"The energy transition can encourage investment, open up jobs, and strengthen local industries," Sinthya said.
Fabien Penone, French Ambassador to Indonesia, Timor Leste and ASEAN said the launch of the IETF is a crucial step in accelerating the energy transition in Indonesia.
This facility will be a platform for global financial institutions, including AFD, to channel funding to support various energy transition projects in Indonesia.
On the other hand, the launch of the IETF facility is an important step in Indonesia's broader energy transition strategy while consodering energy transition as a complex and transformative issue.
"This requires not only large investments, but also strong partnerships, innovation, and long-term commitment to balance targets from environmental, economic, and social aspects," Fabien said.
Diana Acconcia, Director of International Affairs and Climate Finance, Directorate-General for Climate Action (CLIMA) of the European Union said that the IETF is a joint initiative to accelerate the energy transition and support sustainable investment.
She ensured that the EU remains committed to accelerating clean energy and creating an environment that supports sustainable investment.
"Indonesia's role in the global energy transition is critical, and we remain fully engaged in working with Indonesia to drive sustainable economic growth and energy security," Diana said.
Yann Martres, Country Director of AFD, said that the launch of the IETF was carried out in order to support Indonesia in transitioning to more sustainable and inclusive energy.
“With this initiative, AFD, EU and their partners reaffirm their strategic role in combating climate change and supporting the Government of Indonesia towards a just, sustainable and inclusive energy transition,” Yann said.
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