Jakarta – PLN requires an investment of up to USD 500 billion or IDR 7,500 trillion to transition to green energy. These investments are in the form of low-interest financing, policy frameworks, and project collaboration.
President Director of PLN, Darmawan Prasodjo said in a written statement, Thursday (14/7), that in the 2021-2030 PLN Electricity Supply Business Plan (RUPTL), PLN will build new renewable energy plants (EBT) of around 51.6% of the targeted new generators.
He said that Indonesia’s efforts will have a direct impact on the world, so “our efforts to reduce emissions that will have a direct impact on the world need support”.
Earlier in March, Finance Minister Sri Mulyani estimated that the total financing to green energy needed is at least IDR 3,460 trillion, and the state will only be able to meet 34 percent of the amount. This means, the budget needed to fulfill the government’s commitment to reducing carbon emissions cannot be fully financed from the State Budget (APBN).
Meanwhile, the Director General of Financing and Risk Management of the Ministry of Finance Luky Alfirman said that, in carrying out the energy transition in Indonesia, PLN will be the main player.
According to him, various efforts to reduce carbon emissions have been carried out by PLN, ranging from reducing emissions from the power generation sector, to encouraging people to be actively involved in using electricity-based energy in their daily lives. This step is taken as an effort to reduce dependence on fossil-based energy.
“PLN is one of the key players in the energy transition. PLN needs collaboration support from all parties so that the planned energy transition program can run well,” said Alfirman.
The Indonesian government, he continued, is very open to clean energy cooperation schemes to achieve global emission reduction targets. Indonesia encourages the existence of a blended finance scheme that is able to become a win-win solution in terms of investment.
Last June, President Joko Widodo at the G7 summit meeting in Germany, invited large investments and low-carbon technologies to support a fast and effective transition to clean energy. He said Indonesia’s potential as a contributor to clean energy, both in the bowels of the earth, on land, and at sea, is very large.
The Asian Development Bank (ADB) also invites all parties to be able to assist Indonesia in achieving this carbon emission reduction target. ADB, which has been collaborating with Indonesia on clean energy projects, admits that there are no doubts about Indonesia’s commitment.
“We have been helping Indonesia in clean energy projects for a long time. We will of course always support Indonesia. We invite all parties to have the same passion to answer Indonesia’s needs,” said Vice President for East Asia, Asian Development Bank, Ahmed Saeed.
ADB’s commitment is manifested in the financing of PLN’s electricity project of USD 600 million which was agreed in May 2022. (Hartatik)