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AFD and PLN strengthen their cooperation to accelerate Indonesia’s energy transition
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The Agence française de développement (AFD) and Indonesia’s state-owned electricity company PLN have signed a Memorandum of Understanding (MoU) to support the transformation of the Indonesian power system. This new agreement builds on the momentum created with the European Union through the Indonesia Energy Transition Facility (IETF), supported by the Global Gateway strategy and AFD.
The signature of the MoU took place in Paris on December 8th 2025 during a multi-country Energy Transition Inspirational Tour organized to mark the 10th anniversary of the Paris Agreement.
A MoU to accelerate a just energy transition
A just energy transition can only succeed if it takes into account the economic and social realities of a country – its impacts on workers, vulnerable populations, and territories. This is the core ambition of the JETP (Just Energy Transition Partnership), in which France, through AFD, plays a key role alongside the EU.
The MoU signed with PLN establishes a cooperation to:
- identify and support the preparation and implementation of indicative projects aimed at accelerating Indonesia’s energy transition towards cleaner and more sustainable energy production and utilization.
- reinforce capacity building of PLN employees in the development of renewable energy financing.
The shared objective is to (i) increase the renewable energy production, (ii) strengthen, digitalize, and expand the electrical grid for decarbonization, and (iii) increase the storage capacities to facilitate decarbonization.
A partnership strengthened by the multi-country Energy Transition Inspirational Tour
Co-organized by AFD and the European Union, the multi-country Energy Transition Inspirational Tour brought together delegations from Indonesia, Mexico, and South Africa for a week of exchanges with French energy actors (DGEC, IEA, RTE, EDF, ENGIE).
These discussions provided an opportunity to share experience, identify concrete areas of cooperation, and reinforce the partnership around the key challenges of the energy transition.
Nicolas Guichard, Head of the Energy Division, AFD:
“This MoU marks a strategic milestone for AFD. It reaffirms our commitment to supporting the long-term transformation of Indonesia’s power system and accelerating a just energy transition. By joining forces with PLN, we strengthen our shared ability to develop concrete projects, structure ambitious financing, and pave the way for a cleaner and more resilient energy mix that serves the needs of the population.”
Sinthya Roesly, Director of Finance, PLN:
“This partnership is an important step for PLN. Indonesia’s energy transition is not only about reducing emissions, but also about making sure the transition works for our people and our economy. Through this partnership, we will strengthen our capacity to develop renewable energy projects and move toward a more reliable and sustainable power system. International cooperation like this is crucial as we work toward our goal of achieving net zero emissions by 2060 or sooner.”
H.E Fabien Penone, French Ambassador to Indonesia, Timor Leste and ASEAN:
“The collaboration between AFD and PLN is a reflection of the strategic partnership between France and Indonesia in the energy transition sector. It underscores our aligned commitment to sustainable growth and demonstrates how France’s expertise and financial tools can support Indonesia’s ambitious energy and climate goals.”
H.E. Denis Chaibi, EU Ambassador to Indonesia, EU:
“As we mark the 10th anniversary of the Paris Agreement, this MoU is a clear demonstration of what a Team Europe partnership with PLN can achieve. The EU Global Gateway is supporting Indonesia in renewable energy projects that will contribute to reliable and clean power generation. Working together with PLN in project preparation, planning, and investment mobilization, we are delivering on our climate commitments and identifying concrete projects that will accelerate a just energy transition in Indonesia.”
Contact Details:
AFD Indonesia
PLN:
Gregorius Adi Trianto
Executive Vice President Corporate Communication & CSR PLN
Tel. +6221 7261122
Delegation of the European Union to Indonesia:
delegation-indonesia-info@eeas.europa.eu
About Agence française de développement :
Agence française de développement (AFD) helps advance France’s policy on sustainable investment and international solidarity. Through its public sector and NGO financing operations, research and publications (Éditions AFD), sustainable development training programs (AFD Group Campus) and awareness-raising activities in France. AFD finances, supports and drives the transition to a fairer, more resilient world.
Alongside our partners, we provide sustainable solutions for and with communities. Our teams are working on over 2,700 projects in the field, in more than 115 countries, including France’s overseas departments and territories, to support projects for the climate, biodiversity, peace, gender equality and global health. Together with Proparco and Expertise France, AFD supports the commitment of France and the French people to achieve the Sustainable Development Goals (SDGs). Working by your side, toward a world in common.
About PLN:
PT PLN (Persero) is a state-owned electricity company that remains committed to continuous innovation and providing the best service to its customers. Through its Transformation 2.0 agenda, PLN envisions becoming a Top 500 Global Company and the number one choice for customers in energy solutions. This vision is pursued through business growth, end-to-end digitalization, driving the energy transition to support the achievement of Net Zero Emissions (NZE), and developing world-class human resources to strengthen its business processes.
About European Union (EU):
The EU is a political and economic union of 27 Member States. Together, the EU has built a zone of stability, democracy and sustainable development while maintaining cultural diversity, tolerance and individual freedom. The EU is the world’s largest trading bloc, a leader in energy transition driving global efforts through ambitious policies and, the world’s largest source and destination of foreign direct investment.
The 27 Member States of the EU are: Belgium, Bulgaria, Czech Republic, Denmark, Germany, Estonia, Ireland, Greece, Spain, France, Croatia, Italy, Cyprus, Latvia, Lithuania, Luxembourg, Hungary, Malta, Netherlands, Austria, Poland, Portugal, Romania, Slovenia, Slovakia, Finland and Sweden.
About Global Gateway:
Global Gateway is the EU's positive offer to boost smart, clean and secure connections in energy, digital, and transport sectors, and to strengthen health, education and research systems. The Global Gateway strategy embodies a Team Europe approach that brings together the European Union, EU Member States, and European development finance institutions. Together, we have mobilised more than €300 billion in public and private investments over the last 4 years, creating essential links between partners countries and the EU.