Press release
First Indonesia JETP solar project mobilises USD 60 million as investment momentum builds
First Indonesia JETP solar project mobilises USD 60 million as investment momentum builds
- DEG, Proparco and Standard Chartered announce their agreement to finance the 92MWp Saguling floating solar project developed by PLN IP and ACWA Power
- Project mobilises USD 60 million for the Indonesian JETP – in addition to the USD 1.2 billion already secured
- Investment in this first Indonesian JETP solar project points to appetite from both public and private sectors to finance the country’s energy transition
Jakarta, Indonesia – DEG, the German development finance institution, Proparco and Standard Chartered today announce an agreement to finance the development, construction and operation of the Saguling floating Solar PV plant as part of Indonesia’s Just Energy Transition Partnership (JETP). The project mobilises USD 60 million for the Indonesian JETP, increasing funding to accelerate Indonesia’s energy transition.
Located in West Java, the plant is expected to reduce carbon emissions in the Indonesian power system by at least 63,100 tons a year and has an installed capacity of 92 MWp. This will increase electricity production from solar in Indonesia by around 13 percent. The plant is developed by two important players in their sectors, being PLN Indonesia Power, the largest power generation company in Southeast Asia, and ACWA Power, the world’s largest private company in water desalination, a leader in energy transition, and a first mover into green hydrogen from the Kingdom of Saudi Arabia.
The Indonesian JETP launched in 2022 to mobilise capital to accelerate Indonesia’s clean energy transition and facilitate the deployment of affordable, clean energy that materially benefits the Indonesian economy. Investment in the Saguling project represents a blueprint for future clean energy projects in Indonesia supported by public and private sector capital.
The governments of Canada, Denmark, France, Germany, Italy, Japan, Norway, the UK, and the European Union make up the International Partners Group, which is committed to supporting the Indonesia JETP through development finance. The IPG works alongside the Glasgow Financial Alliance for Net Zero (GFANZ), a global coalition of leading financial institutions.
As of early 2025, Germany assumed co-leadership of the IPG in Indonesia’s JETP alongside Japan. Through a working group convened by GFANZ, leading financial institutions–including Standard Chartered–are committed to working closely with the Indonesian Government and the IPG toward the mobilisation and facilitation of capital to support Indonesia’s energy transition.
H.E. Mr. Fabien Penone, Ambassador of France to Indonesia, said: “France actively supports Indonesia’s energy transition through the JETP and has already mobilised over 450 million Euros in this regard. The financing by the French development finance institution Proparco of the Saguling floating solar PV plant highlights our commitment to foster innovative renewable energies in Indonesia and to support its sustainable economic growth.”
Ina Lepel, Ambassador of Germany to Indonesia, said: “This new financial agreement clearly shows: The International Partners Group and GFANZ are closely working together to support Indonesia’s just energy transition. We enter now into a new phase, where more and more investment projects reach a degree of maturity where contracts can be signed.”
Edwin Nugraha Putra, President Director of PT PLN Indonesia Power, said: “As part of our commitment to supporting Indonesia’s sustainable energy transition, PT PLN Indonesia Power has initiated the Hijaunesia and Hydronesia projects. These initiatives also represent our support for the Government’s target of achieving the Net Zero Emission by 2060. PT PLN Indonesia Power is proud to be developing the Saguling floating solar power plant project, as it not only marks a historic milestone – the first floating solar project funded through a public-private partnership, but also highlights the important role of PLN Indonesia Power in accelerating the transformation of Indonesia’s energy sector. We believe that through collaboration with leading global partners such as ACWA Power, Standard Chartered, DEG, and Proparco, we can accelerate the achievement of national renewable energy targets, while also creating a significant positive impact on carbon emission reduction and environmental quality improvement. The success of this project is a step forward, demonstrating that with strong support from various sectors, we can create a greener and more sustainable future for Indonesia.”
Monika Beck, Member of DEG’s Management Board, said: “We are pleased to promote innovative renewable technologies together with our esteemed partners Standard Chartered and Proparco in providing ACWA Power and Indonesia Power Renewables with a debt financing for developing their first floating solar project in Indonesia. As an impact investor DEG focuses on financing such sustainable transformation projects and is proud to have been the lead arranger in the transaction.”
Françoise Lombard, CEO, Proparco, said: “Saguling is a cornerstone of Indonesia’s energy transition under the JETP, and Proparco is proud to support this landmark project alongside our trusted partners. As AFD Group’s private sector arm, we finance public-private partnerships that complement AFD’s support for PLN and the Ministry of Energy. This marks Proparco’s first investment in floating solar technology, reaffirming our commitment to innovation. In a country where land constraints pose challenges, floating solar offers a scalable solution to accelerate the transition. Moreover, this project underscores Proparco’s role in mobilising private capital—an increasingly vital driver of a just energy transition.”
Donny Donosepoetro OBE, CEO, Standard Chartered Indonesia, said: “Standard Chartered stands ready to support Indonesia’s transition to a more sustainable future by financing renewable energy projects that support enduring economic growth alongside sustainable outcomes. Our participation in the financing of the Saguling Floating Solar PV Plant is testament to our dedication to mobilising private capital for clean energy investment, particularly through partnerships like JETP.”
Mary Schapiro, Vice Chair, GFANZ, said, “This milestone transaction underscores the importance of public-private partnerships to unlock the capital needed for Indonesia’s green energy expansion and can serve as an example for future clean energy projects. Alongside the IPG, GFANZ is committed to working with financial institutions focused on mobilising private finance and facilitating investment to help scale Indonesia’s energy transition through the JETP.”
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NOTES TO EDITORS
For further information please contact
Charlotte Love
Director, Sustainability Communications