JBIC Signs POC with National Power Company of Indonesia, PT PLN (Persero)
Supporting Collaboration with PT PLN (Persero) in Clean Energy Sectors

• Region: Asia
• Infrastructures
• Environment

1. The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) signed on August 19 a Protocol of Cooperation (POC) with PT PLN (Persero), a state-owned power company in Indonesia, to strengthen the partnership between the two organizations, on the sidelines of the Asia Zero Emissions Community (AZEC) Ministerial Meeting held in Jakarta, Indonesia.
     
2. 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 POC supplements the MOU signed between JBIC and PLN on November 15, 2022^*1. It aims to strengthen collaboration between the two parties to realize projects that contribute toward reducing greenhouse gas emissions, including ones related to the development of renewable energy and electricity grids, energy efficient technologies, and green transportation. Under this POC, JBIC is expected to support the Indonesian power sector, thereby helping the decarbonization of power sources procured by Japanese companies operating in the country.
     
3. Indonesia announced an emissions reduction target of 31.89% (BaU^*2) by 2030, under an Enhanced NDC submitted to the UNFCCC Secretariat in September 2022, and set a goal to achieve net-zero emissions by 2060 at COP26, held in November 2021.
     
4. In the Fifth Medium-Term Business Plan, released in June 2024, JBIC aims to contribute toward realizing both carbon neutrality and economic growth. In addition, in its ESG Policy, released in October 2021, it is committed to pursuing ambitious and accelerated efforts to reduce its operational GHG emissions to net zero by 2030 and achieve net-zero emissions of its finance portfolio by 2050. The ESG Policy states that JBIC will contribute toward realizing global carbon neutrality by supporting and accelerating energy transitions toward a decarbonized society in emerging and developing countries. The signing of the POC is in line with the Medium-Term Business Plan and the ESG Policy of JBIC as it helps not only the efforts for energy transitions via diverse paths to carbon neutrality in Indonesia but also for developing and realizing Japan’s foreign economic policies.
     
5. 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.
     

Note

1. *1 
   See press release on November 15, 2022.
2. *2 
   Business as Usual: If the status quo is maintained without taking any reduction measures