JBIC Signs MOU with National Power Company of Indonesia, PT PLN (Persero)
Supporting Collaboration between PT PLN (Persero) and Japanese Companies in Clean Energy Sectors
The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) signed on November 1 a Memorandum of Understanding (MOU) with PT PLN (Persero) (PLN; President Director: Darmawan Prasodjo), a state-owned power company in Indonesia to strengthen the partnership between the two organizations, at the series of G20 "Energy Transition Day" events held by PLN in Bali, Indonesia. The documents were exchanged on November 13 in the presence of H.E. Mr. KANASUGI Kenji, Ambassador Extraordinary and Plenipotentiary of Japan to the Republic of Indonesia, and H.E. Dr. Moeldoko, Chief of Staff of Presidency for the Indonesian President.
Indonesia, the 2022 G20 Presidency, announced an emissions reduction target of 31.89% (BaU*1
) by 2030, under an Enhanced NDC submitted to the UNFCCC Secretariat in September, 2022, and set a goal to achieve net-zero emission by 2060 at COP26, held on November, 2021.
PLN, as a state-owned power company in Indonesia, aspires to achieve net zero carbon emissions by 2060 and is pursuing growth ambitions in the low and zero carbon fuels business. The purpose of the MOU is to promote PLN and Japanese companies' collaborative projects in Indonesia in projects related to development of renewable energy and technologies contributing to reduction of GHG emissions.
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 in 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.
Business as Usual : If the status quo is maintained without taking any reduction measures