Jakarta—Indonesia is further strengthening its energy transition efforts with support from the European Union (EU) and France, which provided a grant worth 14.7 million euros, equivalent to Rp 248.43 billion (exchange rate of Rp 16,900), according to the Ministry of Energy and Mineral Resources (MEMR) on Wednesday, February 5.
The grant will be channelled through the Indonesia Energy Transition Facility (IETF) to accelerate the Just Energy Transition Partnership (JETP) implementation and strengthen renewable energy development in Indonesia.
Secretary General of the Ministry of Energy and Mineral Resources Dadan Kusdiana stressed that Indonesia’s cooperation with the EU and France reflects its strong commitment to ensuring a sustainable and inclusive energy transition. “We are not only talking about technology and investment but also how to ensure this transition is fair and involves all levels of society, including local communities and the private sector,” Dadan said at the IETF Kick-Off Meeting.
Based on the agreement, the EU will contribute 10.6 million euros, while France, through Agence Française de Développement (AFD), will contribute 4.1 million euros. The funding program is designed to run for five years, from 2025 to 2030.
In addition to policy, the grant will be used for renewable energy project development, including feasibility studies and technical support for PLN and other energy SOEs.
PT PLN (Persero) Finance Director Sinthya Roesly revealed that the grant, worth 6.5 million euros (Rp 109.85 billion), will strengthen the energy transition in the electricity sector.
“PLN is committed to accelerating the reduction of carbon emissions by encouraging investment in renewable energy. This grant will support the preparation of projects attracting greater investment,” Sinthya said.
She also highlighted the role of AFD, which has been PLN’s partner in various energy projects since 2010. AFD has funded 150 million euros for the electricity transmission and distribution sector.
Infrastructure readiness and private sector participation
The grant supports renewable energy policies and projects and aims to improve institutional capacity and energy infrastructure readiness.
The government emphasised that this step is part of a long-term strategy to achieve Net Zero Emission (NZE) 2060.
According to the Ministry of Energy and Mineral Resources data, almost 60%, or around 91 GW, of Indonesia’s electricity still comes from coal-based power plants. At the same time, renewable energy’s contribution is reported to have only reached 14.1% as of 2024. With international support, the government targets a renewable energy mix of 23% by 2025.
With this funding from the EU and France, it is hoped that the energy transition in Indonesia will be faster and more targeted, paving the way for a cleaner and more sustainable energy future. (Hartatik)
