JBIC Signs MOU with PT Sarana Multi Infrastruktur (Persero), National Infrastructure Finance Company of Indonesia
Supporting Energy Transition in Indonesia
- Region: Asia
The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) signed today a Memorandum of Understanding (MOU) with PT Sarana Multi Infrastruktur (Persero) (PT SMI; President Director: Edwin Syahruzad), a state-owned enterprise under the coordination of the Ministry of Finance of the Republic of Indonesia, which engages in the financing of national infrastructure development, to strengthen the partnership between the two organizations, at the G20 series of events “Grand Launching Indonesia Energy Transition Mechanism Country Platform (Side Event of the G20 Leaders’ Summit)” held by the Government of Indonesia in Bali, Indonesia. The purpose of the MOU is to strengthen the partnership between PT SMI and JBIC to realize projects such as renewable-energy power plants and transmission grid projects that contribute toward the energy transition in Indonesia.
Indonesia, the 2022 G20 Presidency, announced the emission reduction target of 31.89% with its own effort and 43.20% with international support (BaU*1
) by 2030 under Enhanced NDC submitted to the UNFCCC Secretariat in September 2022, and set the goal to achieve net-zero emissions by 2060 in COP26.
In July 2022, the Government of Indonesia, launched the country platform to raise the funds for the Energy Transition Mechanism (ETM). PT SMI, has been officially appointed by the Ministry of Finance as ETM Country Platform Manager, and will play a critical role in implementing the ETM.
In the Fourth Medium-term Business Plan released in June 2021, JBIC aims to respond to energy transformation toward the realization of a decarbonized society. In addition, in its ESG Policy released in October 2021, in line with the international goals to achieve the objectives of the Paris Agreement, JBIC is committed to pursuing ambitious and accelerated efforts to reduce its operational GHG emissions to net zero by 2030, and to achieve net zero emissions of its finance portfolio by 2050. The ESG policy adds that through continued engagement with the relevant national governments and authorities, JBIC will contribute to realizing global carbon neutrality by supporting and accelerating the energy transition toward a decarbonized society of emerging and developing countries. The signing of the MOU is in line with the Medium-term Business Plan and ESG Policy of JBIC.
As Japan’s policy-based financial institution, JBIC will continue to provide financial support to create business opportunities and promote business for Japanese companies in a variety of sectors including decarbonization in Indonesia, by enhancing relations with Indonesia and PT SMI through multiple means such as the signing of MOUs.
Business as Usual : If the status quo is maintained without taking any measures