Indonesia’s PLN Cooperate with IEA to Complete Energy Transition Plan

  • Prasodjo said that the cooperation between the two institutions had been established for a long time.
  • Efforts to achieve NZE require accelerating measures, such as attracting cheap funding for significant investments.

State-owned electricity firm PT PLN is cooperating with the International Energy Agency (IEA) to finalize the Just Energy Transition Partnership Investment and Policy Plan (JETP IPP) for accelerating Indonesia’s energy transition. “We have the same vision for the future, that is, a future of sustainable energy that brings prosperity and glory to the nation and the world,” PLN President Director Darmawan Prasodjo said on Wednesday.

The cooperation was marked by the signing a memorandum of understanding (MoU) between PLN and IEA in Paris, France, on Tuesday (April 18, 2023). Prasodjo said that the cooperation between the two institutions had been established for a long time. The new MoU is focused on supporting the global carbon emission reduction target. IEA has become an international reference for analysis, data, policy, and solution recommendations for energy security, sustainable economy, and environmental development.

Many challenges exist in the energy transition projects, including Indonesia’s dynamic demand for electricity, Prasodjo said. In 2030, PT PLN will manage about 433 million tons of carbon emissions in the electricity sector in a business-as-usual scenario. Efforts to achieve NZE require accelerating measures, such as attracting cheap funding for significant investments.

Meanwhile, IEA Executive Director Fatih Birol said that the agency fully supports Indonesia’s steps toward an energy transition. He also said, “We fully support Indonesia in the energy transition project. IEA’s support to Indonesia can motivate other parties to collaborate in energy transition projects.”

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