At the 29th UN Climate Change Conference of the Parties (COP29) in Baku, Azerbaijan, Indonesia secured a significant boost for its clean energy ambitions through a €1.2 billion green funding agreement with Germany. This landmark deal was announced during the conference, which took place from November 13 to 22, 2024. The funding, provided by Germany’s state development bank Kreditanstalt für Wiederaufbau (KfW), is aimed at supporting Indonesia’s energy transition towards sustainable national energy self-sufficiency.
The agreement was formalized through a Memorandum of Understanding (MoU) signed between Indonesia’s state-owned electricity company, PT PLN (Persero), and KfW. The funds will be utilized for the development of a Pumped Storage Hydroelectric Power Plant (PLTA) and the transmission network connecting green power plants. This initiative aligns with Indonesia’s strategy to increase its renewable energy capacity by 75% over the next 15 years, contributing to its Net Zero Emissions (NZE) target.
Special Presidential Envoy of the Republic of Indonesia, Hashim Djojohadikusumo, emphasized Indonesia’s commitment to accelerating the energy transition and achieving a minimum of 8% sustainable economic growth over the next five years. He highlighted that clean energy projects are crucial for enhancing industrial competitiveness and protecting the environment’s future.
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