Enviro News Asia, Jakarta – PT PLN (Persero) has officially extended its strategic partnership with the China Export-Import Bank (CEXIM) to strengthen support for Indonesia’s national energy transition agenda.
This is marked by the signing of an Amendment to the Memorandum of Understanding (MoU) on the Development of Indonesia’s Energy Transition Financing Potential, held in Jakarta.
The signing of this amendment follows the initial MoU signed on October 16, 2023, in China.
PLN President Director, Darmawan Prasodjo, in a press release on Wednesday (May 28, 2025), expressed appreciation for the continued cooperation between PLN and CEXIM.
According to him, this step marks an important milestone in reaffirming both parties’ commitment to accelerating the energy transition in Indonesia.
“Today’s visit and MoU signing reflect the close bilateral relations between Indonesia and China, as well as the strong ties between President Xi Jinping and President Prabowo Subianto. The energy transition is a crucial foundation for strengthening strategic cooperation between the two countries moving forward,” said Darmawan.
Darmawan explained that Indonesia faces geographic challenges in utilizing new and renewable energy (NRE), where much of the potential lies in remote areas while electricity demand is concentrated in urban centers.
To address this, in addition to planning a 70-gigawatt (GW) increase in power generation capacity—70 percent of which will come from renewable sources—PLN also plans to build a green enabling transmission line spanning 48,000 circuit kilometers over the next 10 years.
To realize this energy transition, total investment needs over the next decade are estimated to reach USD 171 billion. Therefore, collaboration with various stakeholders, both domestic and international, is key to building a reliable and sustainable power system.
“The only way forward is through collaboration. Through this synergy, we are confident in accelerating the energy transition to provide energy that is not only reliable but also environmentally friendly, while creating more jobs and fostering inclusive economic growth for all Indonesians,” Darmawan emphasized.
With this extended partnership, PLN and CEXIM have agreed to jointly support the development of the electricity sector, particularly in generation, including the development of conventional energy (excluding coal-fired power plants) and renewable energy such as solar, wind, geothermal, biomass, and others.
Both parties will explore cooperation in corporate financing, project financing, and other funding solutions, as well as contribute to human resource capacity building and knowledge sharing.
CEXIM Chairman, Chen Huaiyu, expressed appreciation for PLN’s commitment to promoting sustainable development in the power sector. He also reaffirmed CEXIM’s readiness to continue strengthening its strategic partnership with PLN.
“Today’s MoU signing marks the beginning of a new chapter in our collaboration and opens up opportunities to expand the scope of cooperation in various fields,” he said.
According to him, PLN’s efforts not only drive the energy transition but also contribute to national economic development, job creation, and improving public welfare.
Chen added that CEXIM is ready to collaborate in supporting PLN’s initiatives to achieve these goals.
“We greatly appreciate PLN’s energy transition roadmap. We agree that Indonesia cannot pursue this effort alone, and we are very proud to be part of PLN’s 10-year energy transition plan,” Chen concluded. *
