AIIB Partners With Indonesian Government Groups on Energy Transition

The Asian Infrastructure Investment Bank (AIIB) is collaborating with PT Perusahaan Listrik Negara (PT PLN) and PT Sarana Multi Infrastruktur (PT SMI) to implement Indonesia’s Nationally Determined Contributions (NDC) milestones under the Paris Agreement.

The AIIB signed partnership documents formalising the parties’ commitment to work together toward achieving Indonesia’s greenhouse gas reduction target.

The partnerships aim to facilitate Indonesia’s transition from conventional energy sources to renewable and sustainable alternatives.

PT PLN is an Indonesian government-owned corporation that has a monopoly on electric power distribution in Indonesia and generates the majority of the country’s electrical power, PT SMI is a state-owned company engaged in infrastructure financing.

AIIB, PT PLN, and PT SMI said they will be exploring opportunities for project preparation, knowledge sharing, capacity building, and technical assistance in the field of energy transition.

By leveraging their technical expertise and financial resources, all three institutions aim to accelerate the deployment of clean energy technologies and contribute to a greener and more sustainable future for Indonesia.

AIIB added that it intends to provide long-term financing to support the Indonesian Government’s efforts in operationalizing its transition into a low-carbon energy system. This financing will complement existing national and multilateral efforts, such as the Just Energy Transition Partnership while fostering a comprehensive and integrated approach to energy transition in Indonesia.

“This is a crucial decade for climate action,” said Jin Liqun, AIIB President and Chair of the Board of Directors. “As Southeast Asia’s largest economy, Indonesia will be at the forefront of the clean energy transition. By partnering with key energy partners in Indonesia, AIIB is supporting Indonesia’s climate ambitions by unlocking and mobilising additional capital to increase access to clean energy.”