Germany invests $1.26b in Indonesia's power sector

This will fund various green energy projects.

German state development bank Kreditanstalt für Wiederaufbau (KfW) has granted Indonesia $1.26b (EUR 1.2b) to fund the development of green energy projects in the Asian country.

Under the memorandum of understanding signed by PT PLN (Persero) and KfW, the funding will support the development of various green power and clean energy projects, specifically pumped storage hydroelectric power plant (PLTA) and transmission network.

PLN President Director Darmawan Prasodjo said KfW's involvement in the company’s green projects is expected to attract more international partners to collaborate.

KfW Group Sustainability Officer Jurgen Kern also said this assistance represents Germany's commitment to fuel efforts for green transformation.

"Therefore, we believe that Indonesia and Germany can continue strengthening their partnership in the energy sector, especially in clean energy projects like geothermal, hydropower, and transmission. Achieving the [Net Zero Emissions] target requires solid collaboration and partnership," Kern said.

In the next 15 years, Indonesia eyes increasing its renewable energy generation capacity by 75% from the total addition of 100 gigawatts in electricity capacity. 

$1 = EUR0.95