DEG, Proparco, and Standard Chartered have announced their investment in Indonesia's first Just Energy Transition Partnership (JETP) solar project, valued at USD 60 million. This initiative aims to develop, construct, and operate the Saguling floating Solar PV plant in West Java, increasing Indonesia's solar electricity production by approximately 13% and reducing carbon emissions by more than 63,100 tons annually. The solar project, with an installed capacity of 92 MWp, is developed by PLN Indonesia Power and ACWA Power.
The JETP was launched in 2022 to mobilize capital for Indonesia's transition to clean energy and establish affordable solutions that benefit the local economy. Public and private sectors have shown interest in funding the transition, evidenced by the support from the governments of Canada, Denmark, France, Germany, Italy, Japan, Norway, the UK, and the European Union, forming the International Partners Group (IPG).
As of early 2025, Germany and Japan co-lead the IPG, aiming to further Indonesia's energy transition through collaboration with financial institutions, including Standard Chartered. France's support for the initiative has also been substantial, with Proparco, its development finance institution, financing the floating solar plant.
The project's backers emphasize collaboration in reaching Indonesia's renewable energy goals by 2060. Monika Beck of DEG noted the project's focus on innovative renewable technologies. Similarly, Françoise Lombard of Proparco highlighted the importance of floating solar technology in overcoming land constraints, which marks Proparco's first investment in such a solution.
Addressing the role of public-private partnerships in advancing energy transition, Mary Schapiro, Vice Chair of GFANZ, pointed to the Saguling project's potential as a model for future clean energy initiatives. The project represents the collaboration needed to mobilize private finance for green energy expansion in Indonesia.
Edwin Nugraha Putra, President Director of PT PLN Indonesia Power, expressed the company's commitment to supporting Indonesia's energy transformation. He emphasized the historic significance of the Saguling project and its role in accelerating the country's renewable energy objectives.
Donny Donosepoetro, CEO of Standard Chartered Indonesia, reinforced the bank's dedication to financing projects that drive sustainable growth. He stressed the importance of collaborations like JETP in transitioning to cleaner energy.
The agreement with DEG, Proparco, and Standard Chartered underscores a shift towards more sustainable energy solutions in Indonesia, marking progress in the country's clean energy ventures.