China Development Bank to Finance PLN Fast-tracks Energy Transition

TEMPO.CO, Jakarta - China Development Bank (CBD) will fund state power company's PLN efforts to accelerate the energy transition in Indonesia. The two companies signed a memorandum of understanding (MoU) in Beijing on October 16.

PLN president director Darmawan Prasodjo said this MoU serves as a commitment and exploration in terms of corporate funding, project funding, other funding solutions related to the energy transition, as well as increasing the capacity of PLN employees in developing renewable energy.

"The signing of this MoU is a concrete manifestation of the strategic bilateral relations that President Joko Widodo and President Xi Jinping continue to maintain," Darmawan said in an official statement on Wednesday, October 18.

He said that PLN continues to accelerate the transition into greener energy to support the government's greenhouse gas reduction target, which is part of the implementation of the Nationally Determined Contribution (NDC) based on the Paris Agreement.

Darmawan added that in recent years CDB and PLN have collaborated on various projects with hopes to make significant contributions to climate mitigation efforts by fast-tracking Indonesia's energy transition.

"The biggest challenge of energy transition is investment," he said.

Furthermore, he said that PLN was ready to elaborate a comprehensive investment plan, including potential projects where CDB would be able to explore potentials to provide financing support.

AMELIA RAHIMA SARI

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