Jakarta, CNBC Indonesia – PT PLN (Persero) and the Asian Development Bank (ADB) signed a memorandum of understanding (MoU) to support the clean energy program.
This collaboration will include public-private financing to accelerate the phase-out of coal and replace it with clean energy sources.
SOE Minister Erick Thohir said state-owned companies support the country’s energy transition efforts to net zero emission (zero net emissions) because it provides benefits to society and the environment.
“The Ministry welcomes the cooperation of SOEs with various stakeholders, which marks the first step towards a just and affordable transition to promote a carbon-neutral development path,” Erick said in his statement, quoted Tuesday (2/11/2021).
In an official statement, ADB Vice President Ahmed M. Saeed said this collaboration was in line with ADB’s steps, which have been involved in the energy sector in Indonesia for more than 50 years.
“ADB is ready with our partners in Indonesia to support the transition to renewable energy that is also reliable and affordable,” he said.
Indonesia is one of three countries in Southeast Asia to partner with ADB in the Energy Transition Mechanism (ETM) pilot study, the other countries being the Philippines and Vietnam.
ADB has completed a pre-feasibility study into the ETM and is currently working on a full feasibility study.
To note, ADB recently increased its funding to support climate, with a cumulative value for the period 2019-2023 to US$ 100 billion or equivalent to Rp. 1,420 trillion.
ADB is also committed to ensuring that at least 75% of its projects will address climate change mitigation and adaptation by 2030.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and Pacific, while maintaining its efforts to eradicate extreme poverty. Founded in 1966, owned by 68 members.
(bag bag)
– .
