Indonesia's PLN, JBIC sign pact on energy transition

Indonesian utility PLN has signed a memorandum of understanding with the Japan Bank for International Cooperation (JBIC) on energy transition investments, the company said on November 16.

The president director of PLN, Darmawan Prasodjo, said that this collaboration aims to exchange data and information as well as joint consultations regarding energy transition investments.

PLN has developed a long-term energy transition plan. There are eight initiatives, namely the termination of coal power plants, co-firing biomass, co-firing hydrogen and ammonia trials, carbon capture and storage, construction of EBT generators, smart grids, green energy as a service, and electric vehicle ecosystems.

"PLN and JBIC confirmed their willingness to work together through potential project support to achieve the energy transition in Indonesia. The areas of cooperation include, among other things, renewable energy and technologies that contribute to reducing greenhouse gas emissions," Prasodjo added.

JBIC's head for Asia and Pacific, Matsuda Noriyasu, said this collaboration would help the bank carry out active coordination with Japanese companies needed to identify opportunities for PLN to collaborate.

"In addition, we are committed and trying to provide loans, guarantees and equity investment to support potential projects," Noriyasu said.