PLN Strengthens Clean Energy Partnership with USAID

Translator

Ririe Ranggasari

Editor

Laila Afifa

5 August 2022 16:29 WIB

TEMPO.CO, JakartaIndonesia's state power company PLN strengthened its partnership with the United States Agency for International Development (USAID) to accelerate Indonesia's transition to a cleaner and more sustainable energy sector.

A memorandum of understanding (MOU) was signed by PLN President Director Darmawan Prasodjo and USAID Mission Director Jeff Cohen in Jakarta on Wednesday, August 3.

The MoU is expected to expand the long-term partnership between Indonesia and the U.S. to fast-track the power sector's transition to sustainable energy resources through the deployment of renewable energy and system modernization.

In a press release on August 4, the US Embassy said that the partnership is part of USAID's assistance to Indonesia under the coordination of the Energy and Mineral Resources Ministry. Through the MoU, USAID will further assist Indonesia in developing viable scenarios to decarbonize the power sector.

These scenarios include early retirements of coal power plants and identifying incentives to increase investments in renewable energy, in order to advance a potential just energy transition partnership in support of the Indonesian government's goal to achieve Net Zero Emissions by 2060 or earlier, as consistent with the Paris Agreement.

"In the fight against climate change, Indonesia’s energy transition is vital to ensuring a livable future for everyone on the planet," Mr. Jeff Cohen said.

Activities listed in the MoU include PLN and USAID's plan to accelerate the deployment of clean energy, increase knowledge exchanges between Indonesian and American clean energy experts, and provide technical expertise and knowledge for policymakers seeking to reduce greenhouse gas emissions from Indonesia's power sector.

PLN president director Darmawan Prasodjo said that the company has the same goal of achieving Net Zero Emission by 2060 in supporting the contribution and vision of the Government of Indonesia in reducing CO2 emissions.

"Roadmaps, objectives and strategies have been developed, but we recognize that there are still many challenges. Electricity prices, finance, technology and policy, are some of the challenges that need to be addressed and resolved. We believe that by collaborating and strengthening partnerships, we will be able to overcome all these challenges and accelerate PLN's journey towards carbon neutrality. We are open to the cooperation of all parties at the national and multinational level, including USAID, to support PLN in achieving this goal.” Darmawan said.

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