Enviro News Asia, Jakarta — Indonesia’s commitment to promoting a just and sustainable energy transition continues to be realized by the Indonesian Government, one of which is through the Just Energy Transition Partnership (JETP)—a collaborative effort between the Government of Indonesia and the International Partners Group (IPG), including the Glasgow Financial Alliance for Net Zero (GFANZ). The formation of Indonesia’s JETP, launched in 2022, aims to mobilize funding to accelerate the country’s transition to environmentally friendly energy and facilitate the deployment of clean, affordable energy that can provide significant benefits to the Indonesian economy.
According to a press release from the Coordinating Ministry for Economic Affairs, in order to implement the partnership, the Saguling Floating Solar Power Plant (PLTS Terapung Saguling) will be developed by PLN Indonesia Power in collaboration with ACWA Power. The financing for development, construction, and operation will be provided by the German development finance institution DEG, the French development finance agency PROPARCO, and Standard Chartered Bank. The project is mobilizing USD 60 million for JETP Indonesia and is expected to increase funding to accelerate an inclusive energy transition.
“Investment in the Saguling Floating Solar Power Plant is not merely a solar power generation project. It symbolizes the spirit of collaboration between the Indonesian Government, the international community, and the private sector to accelerate the shift toward clean energy while promoting inclusive and sustainable economic growth,” stated Coordinating Minister for Economic Affairs Airlangga Hartarto during the Investment Signing Ceremony for the Saguling Floating Solar Plant at the Coordinating Ministry for Economic Affairs office on Tuesday (29/04).
Located in West Java, the power plant has an installed capacity of 92 MWp and is expected to reduce carbon emissions in Indonesia’s power system by at least 63,100 tons per year. Furthermore, the development of the Saguling Floating Solar Power Plant is projected to boost solar electricity production in Indonesia by approximately 13%.
Minister Airlangga further expressed his appreciation for the trust and support from investors and international financial institutions such as Germany’s DEG, France’s PROPARCO, and the UK’s Standard Chartered Bank, who have shown confidence in Indonesia’s renewable energy potential.
Looking ahead, Minister Airlangga also stated that the Indonesian Government remains committed to fostering a conducive investment climate for renewable energy development. Regulatory reform, incentives, and strengthening public-private partnerships are integral parts of the national strategy to achieve Net Zero Emissions by 2060.
“I encourage all parties to continue strengthening collaboration, innovating, and maintaining a spirit of optimism in our journey toward a clean, sustainable, and just energy future for Indonesia,” Minister Airlangga concluded.
On the same occasion, French Ambassador to Indonesia Fabien Penone, who witnessed the investment signing, also stated that France continues to actively support Indonesia’s energy transition through the JETP. The financing provided by France’s development finance institution PROPARCO for the Saguling Floating Solar Plant demonstrates France’s commitment to developing innovative renewable energy in Indonesia.
Meanwhile, British Ambassador to Indonesia Dominic Jermey also emphasized that Indonesia’s current energy transition is showing progress and the UK remains committed to supporting Indonesia’s energy transition efforts, including through the strategic JETP partnership.
For your information, the governments of Canada, Denmark, France, Germany, Italy, Japan, Norway, and the European Union have formed the IPG, which is committed to supporting JETP Indonesia through development financing. IPG collaborates with GFANZ, a global coalition comprising leading financial institutions. In early 2025, Germany, together with Japan, will assume leadership of IPG for JETP Indonesia. Through working groups established by GFANZ, leading financial institutions such as Standard Chartered have committed to mobilizing private financing and facilitating investment to support Indonesia’s energy transition alongside the IPG. The collaboration between IPG and these financial institutions is expected to mobilize up to USD 20 billion in funding.
