"The European Union channeled 14.7 million Euros to AFD (Agence Française de Développement). AFD then forged direct cooperation with PLN (Indonesia's state-run electricity company)," Secretary General of the Ministry of Energy and Mineral Resources Dadan Kusdiana revealed.
Kusdiana made this announcement during Wednesday's Kick-Off Meeting for the Indonesia Energy Transition Facility in Jakarta.
He detailed that out of the total 14.7 million Euros grant provided for the Indonesia Energy Transition Facility (IETF) program, 44 percent, or around 6.5 million Euros, will be utilized by PLN to enhance its capacity for energy transition efforts.
The remaining funds will be directed towards initiatives led by the Ministry of Energy and Mineral Resources.
"We have other forms of cooperation. We have mineral cooperation to advance sustainable minerals," he affirmed.
On the same occasion, PLN Finance Director Sinthya Roesli stated that the grant will facilitate the preparation of energy transition projects, provide technical assistance, and ensure that the projects support the transmission or distribution of renewable energy.
"I think we will also use the grant for some forms of capacity building or institutional improvement that also help energy transition in the future," she remarked.
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Meanwhile, French Ambassador to Indonesia, Timor-Leste, and ASEAN Fabien Penone stated that the IETF marks an important step in expediting Indonesia's energy transition, yielding considerable benefits for the region.
Grants provided through the program will focus on two components: support for energy policies and preparations for renewable energy and new energy transmission projects.
He underlined that achieving energy transition necessitates substantial investment as well as robust partnerships, innovations, and long-term commitment to balancing environmental, economic, and social objectives.
He further noted that the IETF aligns with the vision of a just energy transition, aiming to create new economic opportunities, safeguard jobs, and assist vulnerable communities.
Through the collaboration, the combined expertise of Indonesia, France through AFD, and the EU will be leveraged to accelerate the adoption of renewable energy and address the complexities of energy transition.
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Translator: Kuntum Khaira, Raka Adji
Editor: Yuni Arisandy Sinaga
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