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Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) renewed on January 30 a Memorandum of Understanding (MOU)
*1 with PT PLN (Persero) (PLN), the national electricity company of Indonesia.
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The MOU aims to further strengthen the partnership between JBIC and PLN to support the achievement of the RUPTL 2025–2034, which was released by the Indonesian government in May 2025. The areas of cooperation include renewable energy development, improvement of power grids and smart grids, electricity interconnection projects, high-voltage direct current (HVDC) systems, and geothermal power projects.
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Under the RUPTL plan, PLN as the state-owned electricity company in Indonesia has identified renewable energy development and transmission grid enhancements, including the implementation of HVDC systems, as key investment priorities for the next decade. These priorities support the Indonesian government's national goal of achieving carbon neutrality by 2060 or sooner.
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In the Fifth Medium-Term Business Plan, released in June 2024, JBIC aims to contribute toward the integrated realization of carbon neutrality and economic growth, as well as the assurance of economic security. It also supports efforts toward global green transformation (GX) and energy transitions based on countries' diverse pathways to carbon neutrality. The renewal of the MOU aligns with the Medium-Term Business Plan of JBIC. In January 2022, the government of Japan proposed the concept of the Asia Zero Emission Community (AZEC), a framework to provide support and cooperation for efforts for energy transition by Asian countries by leveraging the strengths of Japanese companies, such as their technology and expertise. Indonesia is an important partner country in the AZEC framework, and the renewed MOU is aligned with the policy of the Japanese government.
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HVDC technology, which has been newly added as a target area under the MOU, is a field in which Japanese companies possess a high level of competitiveness. This MOU is expected to support the activities of Japanese companies seeking to expand their business in Indonesia. With the renewal of this agreement, collaboration between PLN and Japanese companies in the clean energy sector is expected to accelerate, contributing toward the achievement of carbon neutrality goals and the development of resilient core infrastructure in Indonesia, a comprehensive and strategic partner for Japan.
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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 clean energy in Indonesia.
