Indonesia Secures €1.2 Bln In Green Financing From KfW To Advance Renewable Energy Transition

By Mohd Iswandi Kasan Anuar

JAKARTA, Nov 25 (Bernama) -- The Indonesian government has secured €1.2 billion in green financing for the power sector from Kreditanstalt für Wiederaufbau (KfW) to support the development of various green power infrastructures, advancing the nation’s sustainable energy transition.

A Memorandum of Understanding (MoU) was inked between PT PLN (Persero) and KfW during the 29th Conference of the Parties (COP29) in Baku, Azerbaijan, on Nov 13.

PLN is Indonesia’s state electricity company, while KfW is a German state-owned investment and development bank headquartered in Frankfurt.

At the conference, Special Envoy of the Indonesian President, Hashim Djojohadikusumo, said the government is committed to reducing carbon emissions through energy transition.

He said the shift towards renewable energy is expected to enhance energy self-sufficiency and drive national economic growth.

“We have developed a new strategy over the next five years to achieve a minimum of eight per cent sustainable economic growth,” he stated in a statement issued by PLN on Monday.

He emphasised that the development of clean energy sources is crucial for improving Indonesia’s industrial competitiveness.

Over the next 15 years, the country aims for a 75 per cent increase in renewable energy generation capacity, contributing to the planned addition of 100 gigawatts of electricity capacity.

“We deeply appreciate the established international cooperation, which is a testament to our collective efforts in achieving the Net Zero Emissions target,” he added.

-- BERNAMA