PLN Issued Letter of Intent on Green Financing
MINISTRY OF ENERGY AND MINERAL RESOURCES
REPUBLIC OF INDONESIA
PRESS RELEASE
NUMBER: 327.Pers/04/SJI/2020
Date: 2 November 2020
PLN Issued Letter of Intent on Green Financing
As proof that it supports the government's efforts to increase the use of environmentally friendly energy and reduce carbon emissions, PT PLN (Persero) has made the transformation to realizing clean energy-based financing (green financing) by issuing "Letter of Intent on Sustainable Financing Framework".
Head of Bureau of Communication, Public Information Services, and Cooperation of Ministry of Energy and Mineral Resources, Agung Pribadi, said that green financing is one of the company's commitments in transforming the financial system to adjust with times. "This proves that the energy sector companies can adapt to the global challenge of creating clean energy," said Agung in Jakarta on Monday (2/11).
Agung further expects that PLN can optimize opportunities, especially from the global banking sector, for New, Renewable Energy financing. "The banking sector is currently quite aggressively funding renewables projects. PLN must be able to seize this opportunity," he explained.
The issuance of the Letter of Intent has been directly supported by Asian Development Bank. PLN has also been preparing various steps to become a "Green and Sustainable" power company in Indonesia.
"Although this is a challenging road, we are ready to transform. We have been looking forward to this challenge and we are ready to provide high quality and sustainable electricity supply to the people of Indonesia," said PLN's President Director Zulkifli Zaini in the company's official release.
The issuance of the Letter of Intent, continued Zulkifli, is PLN's first public commitment to sustainable financing and is expected to strengthen ongoing programs. These include capacity building and improved business processes of the company to meet international requirements on environmental and social protection, which in turn will impact positively on the company in the long term.
ADB Director General of Southeast Asia Department, Ramesh Subramaniam, explained that his office was pleased to be involved in the financing because it was an important step in PLN's commitment and efforts to provide clean and sustainable energy.
"We look forward to continuous collaboration in delivering high quality and sustainable electricity infrastructure and improving the quality of life of the people of Indonesia," said Ramesh.
PLN has continued to show its seriousness of providing environmentally friendly electricity. In 2019, it made an additional 463 megawatts (MW) of renewable plants, 60 percent higher than the set target.
PLN has also installed more than 160 'PLTS Komunal' (communal solar PV systems) for communities in East Nusa Tenggara and Papua provinces, especially to supply electricity to remote areas in the provinces. Programs that support electricity for 3T (remote, outermost, and underdeveloped) areas have also been carried out, including the Lisa (Village Electricity) Program for rural electrification, and the provision of free electricity connections to over 48,000 households. (IY)
Head of Bureau of Communication, Public Information Services, and Cooperation
Agung Pribadi (08112213555)