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President Jokowi witnesses PLN's cooperation agreements with 9 companies at ICBF 2023
During his official visit to meet Chinese President Xi Jinping from Oct. 15 to 18, President Joko “Jokowi” Widodo, witnessed agreements between PT PLN (Persero) and two major Chinese clean energy companies meant to foster renewable energy development in Indonesia.
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uring his official visit to meet Chinese President Xi Jinping from Oct. 15 to 18, President Joko “Jokowi” Widodo, witnessed agreements between PT PLN (Persero) and two major Chinese clean energy companies meant to foster renewable energy development in Indonesia, at the Indonesia-China Business Forum (ICBF) in Beijing, China.
Aside from the two memorandums of understanding (MoUs) witnessed by President Jokowi, PLN also signed seven additional MoUs with prominent entities, including The Export-Import Bank of China, Sinosure, Bank of China, Industrial and Commercial Bank of China, State Development & Investment Corp. Ltd, Huawei Tech Investment and China Energy International Group. The value of these collaborations totaled over US$54 billion.
In his address, President Jokowi emphasized his visit's purpose of strengthening bilateral relations between Indonesia and China, focusing on key priorities such as increasing Indonesian exports, boosting investments and enhancing food security.
PLN plays a crucial role in increasing investment between China and Indonesia in the energy sector, aligning with the government's commitment to accelerating Indonesia's energy transition. PLN signed an MoU with the State Grid Corporation of China (SGCC) and Trina Solar China for the development of a smart grid, the cornerstone of clean energy in Indonesia.
PLN's CEO, Darmawan Prasodjo, who accompanied President Jokowi to Beijing, expressed his appreciation for the newly forged collaborations with world-class energy companies in China, seeing the forum as an opportunity to strengthen partnerships.
Darmawan said the collaboration with SGCC represented a significant step in advancing the energy transition in Indonesia.
“PLN hopes that this partnership with SGCC will lead to the creation of an environmentally friendly supergrid, a smart grid and further expansion of their collaboration,” Darmawan said.
The PLN-SGCC cooperation initiative also includes joint studies on utilizing renewable energy, energy storage, power network integration and smart network management to enhance the reliability, quality and cost-effectiveness of the Indonesian power system.
PLN's collaborations also extend to Chinese investor Trina Solar. Through PLN Indonesia Power Renewables, a joint venture was formed with Trina Solar, Sinar Mas and Agra Surya Energi in order to build the largest solar cell and panel factory in Indonesia within the Kendal Industrial Area in Central Java.
Darmawan further elaborated on the Trina Solar collaboration, stating, “Trina Solar is a leading company with cutting-edge technology. The joint venture we just launched is to facilitate the manufacturing of Solar PVs for Indonesia. Our plan is to expand production capacity so that we can supply large-scale Solar PV for markets in Indonesia.”
The development of the Solar PV manufacturing facility in Kendal demonstrates PLN's commitment to maximizing Indonesia's vast solar energy potential, which amounts to 207 gigawatts.
Collaborations like these are expected to accelerate Indonesia's ambitious energy transition scenario, with a goal of 75 percent of additional energy capacity coming from renewable sources and the remaining 25 percent from natural gas by the year 2040.
Additionally, these agreements represent PLN's commitment to supporting the government's efforts to attract investment in renewable energy in Indonesia.
The China-Indonesia Business Forum is a part of the Third Belt and Road Forum for International Cooperation initiated by the Chamber of Commerce Committee of China.
The Belt and Road Forum aims to foster international collaboration through extensive consultations, mutual contributions, open, green, clean and high-standard cooperation to enhance people's lives and promote sustainable development.
