The Asian Infrastructure Investment Bank (AIIB) has announced a strategic partnership with PT Perusahaan Listrik Negara (PT PLN) and PT Sarana Multi Infrastruktur (PT SMI) to propel Indonesia toward achieving its Nationally Determined Contributions (NDC) targets under the Paris Agreement.
During the 2023 AIIB Annual Meeting held in Sharm El Sheikh, the three entities formalized their commitment to collaborate on Indonesia’s greenhouse gas reduction objectives. The primary goal of this partnership is to facilitate Indonesia’s shift from traditional energy sources to sustainable and renewable alternatives.
AIIB President Jin Liqun emphasized the critical nature of the next decade for climate action, stating, “As Southeast Asia’s largest economy, Indonesia plays a pivotal role in the clean energy transition. AIIB is committed to supporting Indonesia’s climate aspirations by partnering with key energy stakeholders to mobilize capital for expanding access to clean energy.”
PT SMI President Director Edwin Syahruzad highlighted the importance of cooperation in multiple sectors to drive energy transition. “This collaboration allows us to jointly navigate the energy transition landscape across various domains, including social, environmental, technological, and financial. With concerted efforts, we anticipate achieving sustainable, equitable, and affordable clean energy in the near future,” he stated.
Darmawan Prasodjo, CEO of PT PLN, stressed the significance of financial support in accelerating Indonesia’s energy transition. He affirmed PT PLN’s dedication to fostering relationships with diverse stakeholders to advance the transition from conventional to renewable and sustainable energy sources.
The collaboration underscores AIIB, PT PLN, and PT SMI’s shared commitment to sustainable development and climate change mitigation. AIIB intends to provide long-term financing to support Indonesia’s transition to a low-carbon energy system, complementing existing national and multilateral initiatives like the Just Energy Transition Partnership. This collaborative approach aims to drive a comprehensive and integrated energy transition strategy in Indonesia.
AIIB, PT PLN, and PT SMI will explore opportunities for project preparation, knowledge exchange, capacity building, and technical assistance within the energy transition sector. By leveraging their expertise and financial resources, these institutions aim to expedite the adoption of clean energy technologies, contributing to a greener and more sustainable future, not only for Indonesia but also for the global community.