DEN, Bank Mandiri, PT LEN Sign MoU on Rooftop Solar PV

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 164.Pers/04/SJI/2020

Date: 11 May 2021

DEN, Bank Mandiri, PT LEN Sign MoU on Rooftop Solar PV

Indonesia prioritizes the development of new and renewable energy to reduce dependence on fossil energy. This is in line with the mandate of Law Number 30 of 2007 on Energy. In addition, Indonesia is committed to developing and utilizing renewables as an effort to increase national energy security and mitigate climate change.

Secretary General of Indonesian National Energy Council (DEN), Djoko Siswanto, made the statement at the signing ceremony of Memorandum of Understanding on the Cooperation to Install Rooftop Solar Photovoltaic Systems between Secretariat General of DEN (Setjen DEN), upstream oil and gas regulatory institution SKK Migas, state electronic company PT LEN, and state bank Bank Mandiri.

"Indonesia is committed to reducing greenhouse gas emissions from the baseline by 29 percent on its own or 41% with international assistance. Of this percentage, the energy sector is expected to contribute to reducing greenhouse gas emissions by 314-398 million tonnes of CO2 by 2030, as signed by President Joko Widodo in the Paris Agreement," said Djoko.

Setjen DEN has set up the initiative in supporting this commitment through various efforts.

"We strongly promote the implementation of the energy transition program through our daily practice, so we're acting not only as policy makers in the energy sector, but also as practitioners and agents of change in the energy sector for a better Indonesia," added Djoko.

Previously, Setjen DEN had secured similar cooperation with state bank Bank BRI and PT LEN. Djoko said the participation of Bank Mandiri and SKK Migas in the Rooftop Solar PV program is positive progress, and expected other work units within the Ministry of Energy and Mineral Resources and state ministries to follow suit.

"We have high hopes that the cooperation will encourage other work units within the Ministry of Energy and Mineral Resources and state ministries to enter into a similar cooperation agreement. Additionally, employees of Setjen DEN and SKK Migas can have easy and quick access to loans to utilize Rooftop Solar PV. Thank you, Bank Mandiri," he said.

Djoko believes that the installation of Rooftop PV offers great benefits, such as reducing electricity bills and contributing to solving environmental problems.

"Meanwhile, for the use of on-grid Rooftop PV or solar systems that are connected to PLN's network, the government has prepared regulations for calculating the export and import of electricity (net metering). Such calculation will offer even better economic benefits, because we can sell excess electricity that is generated during the day to PLN," Djoko added.

In the same vein, Senior Executive Vice President for Micro & Consumer Finance of Bank Mandiri, Josephus Koernianto, said that the cooperation showed the support of Bank Mandiri for meeting the 23% renewables target in the energy mix by 2025.

"As we all know, synergy and collaboration from all stakeholders are needed to realize the national energy mix. Solar energy as one of the sources of new, renewable energy has been considered as an option to accelerate realization of the energy mix target," Josephus concluded.

Under the cooperation agreement, Bank Mandiri will provide loans to customers who wish to install solar systems. The loans will be offered via a credit card scheme without collateral, which is cheap and which can be paid in installments. (IY)

Head of Bureau of Communication, Public Information Services, and Cooperation

Agung Pribadi (08112213555)

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