Germany's state development bank, Kreditanstalt für Wiederaufbau (KfW), has allocated $1.26 billion (EUR 1.2 billion) to support Indonesia's green energy initiatives.
The funding, formalized through a memorandum of understanding with PT PLN (Persero), aims to accelerate the development of renewable energy infrastructure, including pumped-storage hydroelectric power plants and transmission networks.
PLN President Director Darmawan Prasodjo expressed optimism that KfW's involvement would attract additional international collaborations to advance Indonesia's energy transition goals.
Jurgen Kern, Sustainability Officer at KfW, highlighted the grant as a demonstration of Germany's commitment to fostering global green transformation. “Achieving the Net Zero Emissions target requires solid collaboration and partnership. Indonesia and Germany can continue strengthening their energy sector partnership, particularly in clean energy projects like geothermal, hydropower, and transmission,” Kern said.
Indonesia has outlined ambitious renewable energy targets, aiming to increase green energy capacity by 75% over the next 15 years as part of its goal to add 100 gigawatts to the national electricity grid.
Source: Asia Power
