"We are proud to be able to collaborate with PLN to help Indonesia conduct important transition from carbon-based energy to clean energy," ADB's Vice President, Ahmed M. Saeed, said in an official statement issued here on Wednesday.
The MoU was signed by PLN's President Director Zulkifli Zaini and ADB's Director General for Southeast Asia Ramesh Subramaniam on the sideline of the 26th UN Climate Change Conference of the Parties (COP26) in Glasgow, Scotland.
Indonesia is committed to reducing greenhouse gas emissions by up to 29 percent by 2030 and reaching net-zero emissions by 2060 or before.
"The entire SOEs (State-Owned Enterprises) support Indonesia's transition to net-zero emission because this will be beneficial for the people and the environment," SOEs Minister Erick Thohir stated.
He warmly welcomed SOEs' cooperation with various stakeholders, saying this is the first step toward a fair and affordable transition to support the carbon-neutral development path.
Indonesia is one of the three Southeast Asia nations, in addition to the Philippines and Vietnam, that are partnering with ADB in a study concerning the Energy Transition Mechanism (ETM).
The study involves a carbon reduction program that utilizes government and private financing to expedite the phasing out of coal power plants and replace them with clean and renewable energy sources.
In related news, Energy and Mineral Resources Minister Arifin Tasrif asserted Indonesia’s commitment to phase out coal-fired power plants (PLTU) at the Indonesian Pavilion at the COP26.
"We will start the first phase of halting the use of PLTU and reducing the use of diesel in 2031," he announced, according to a statement received here on Tuesday.
Related news: Government unveils solar power independent study program
Related news: RI committed to reducing greenhouse gas emissions through clean energy
Related news: Minister highlights Indonesia's clean energy strategies at CEM 11