AFD and PT PLN strengthen their cooperation for the acceleration of Indonesia’s clean energy transition

chalerouxjb@afd.fr

Published

31 Jul 2026

AFD and PT PLN strengthen their cooperation for the acceleration of Indonesia’s clean energy transitionchalerouxjb@afd.frFri, 31 Jul, 2026 - 04:45 In the field July 31, 2026 0 Indonesia Jakarta, 15 July 2026 – The Agence française de développement (AFD) and PT PLN (Persero), Indonesia's state-owned power utility, signed the Result-Based Loan Accelerating Indonesia Clean Energy Transition (RBL AICET), amounting to €260.2 million. This agreement marks a significant milestone in Indonesia's pursuit of a sustainable, low-carbon economy, reinforcing PLN's capacity to scale up renewable energy across the national power system. A Long-Term Commitment to Indonesia's Energy FutureSpanning six years (2026–2031), the RBL AICET is aligned with Indonesia’s development ambition to achieve high-income status by 2045 through economic, social, and governance transformation. By channelling finance into the backbone of Indonesia's electricity infrastructure, the programme targets the supply of cleaner electricity, generating tangible environmental and public health benefits for millions of Indonesians. A Strong Coalition of Development PartnersThe programme is cofinanced by a coalition of international development partners — the Asian Development Bank (ADB), which also channels cofinancing from the European Union (EU), together with AFD and KfW - alongside PLN, for a combined amount of $1,509.0 million. AFD’s contribution forms part of France’s commitment to mobilise €500 million in support of Indonesia's energy ambitions under the Just Energy Transition Partnership (JETP), reflecting France's strong and sustained engagement in the country's green transition. In addition to its cofinancing contribution, the EU supports the technical assistance programme associated to AFD’s and KfW’s financing in a Team Europe approach under its Global Gateway strategy. This support enables the result-based mechanism and reinforces PLN’s climate change adaptation strategy, helping to accelerate Indonesia’s clean energy transition.Three Pillars of TransformationThe RBL AICET programme is structured around three outputs:Transitioning to clean electricity supply — The programme monitors the progress toward additional solar PV and/or wind power generated electricity supplied to the grid, and by establishing capacity-building program at PLN Corporate University to deliver courses on energy transition for PLN’s employees.Strengthening grid infrastructure for renewable integration — Support is provided for upgrading transformer capacity at substation across Java-Bali, Sumatra, and Sulawesi, and upgrading transmission control centres in Sumatra and Sulawesi.Enhancing institutional capacity — The programme ensures the implementation of safeguard frameworks with adequate and qualified resources, increasing PLN ‘s employees’ knowledge and skills relevant to energy transition, and filling the positions related to renewable energy development by women. Quote from PLN"Climate change is a global challenge that requires global collaboration. No single institution or country can address it alone. Indonesia's energy transition is a strategic journey that must simultaneously strengthen energy security, affordability, and sustainability. This programme reflects the power of collaboration between PLN, the Government of Indonesia, and our international development partners in accelerating that journey. Through this collaboration, we are expanding renewable energy integration and strengthening the electricity grid to build a more resilient and future-ready power system. Together, we are laying the foundation for a cleaner energy future that supports Indonesia's long-term economic growth and our commitment to achieving Net Zero Emissions," said Darmawan Prasodjo, President Director of PT PLN (Persero).Quote from AFD’s Jakarta Office“The RBL AICET is a landmark in our long-standing partnership with Indonesia and PLN. We are working together towards cleaner energy transition, more resilient power system —combining renewable energy expansion, modernised grid infrastructure, and strengthened institutional capacity. This is what concrete climate action and financing look like: working hand-in-hand with PLN to turn Indonesia's energy ambitions into reality, for the benefit of its people and the planet.” said Yann Martres, AFD Country Director in Indonesia.Quote from French Embassy “This €260 millions loan from AFD to PLN is a new important step and illustrates the long-term commitment of France towards Indonesia –the energy transition in Indonesia being a key part of our global and strategic bilateral cooperation” highlights H. E. Mr. Fabien Penone, Ambassador of France to Indonesia, Timor-Leste, and ASEAN.Quote from European Union“For the EU, partnering with the Government of Indonesia and PLN, in a Team Europe approach – together with AFD and KfW – is the kind of collaboration that makes a difference. By joining forces and pooling our financial resources and technical expertise, we can help mobilize the investment needed to accelerate renewable energy deployment and strengthen grid readiness. This programme is a concrete example of Global Gateway in action and forms part of Team Europe’s €3.4 billion offer under the Just Energy Transition Partnership. We are proud to support Indonesia in advancing a just, affordable, and sustainable energy transition that delivers lasting benefits for its people” said H.E. Denis Chaibi, Ambassador of the European Union to Indonesia and Brunei DarussalamThis ambitious initiative marks a catalytic moment: AFD and PLN, joining forces to accelerate Indonesia's energy transition, transforming our collective commitment into lasting, inclusive growth and a cleaner tomorrow for all. About PLN PerseroPT PLN (Persero) is a state-owned electricity company that continues to commit and innovate in providing the best service for customers. PLN carries the Transformation 2.0 agenda with a vision of becoming a Top 500 Global Company and becoming the number 1 choice for customers for Energy Solutions through business growth initiatives, end-to-end digitalization implementation, implementing energy transitions to support the achievement of Net Zero Emissions (NZE), and performing business activities with world-class human resources.About AFDAgence Française de Développement (AFD) Group finances, supports and accelerates the transitions necessary for a more just and resilient world. It thus contributes to implementing France’s policy on sustainable development and international solidarity. It is with and for communities that we build, with our partners, solutions in more than 160 countries, as well as in 11 French overseas departments and territories.Our objective: to reconcile economic development with the preservation of common goods (the climate, biodiversity, peace, gender equality, education and health). Our teams are involved in more than 3,600 projects in the field, which are part of the commitment of France and the French people to fulfilling the Sustainable Development Goals (SDGs). For a world in common.AFD started its operations in Indonesia in 2007 with a mandate focusing on the fight against climate change. Since then, it has mobilised more than EUR 3.8 billion of financing in Indonesia, aiming at contributing to the achievement of the SDGs and to preserve common good. www.afd.fr/en.About the EUThe European Union (EU) is the economic and political union of 27 Member States. Together, the EU has built a zone of stability, democracy and sustainable development while maintaining cultural diversity, tolerance and individual freedom. The EU is the world's largest trading bloc, and the world's largest source and destination of foreign direct investment. Collectively, the EU and its Member States are the largest donors of Official Development Assistance (ODA), providing close to half of ODA globally.The 27 Member States of the EU are: Belgium, Bulgaria, Czech Republic, Denmark, Germany, Estonia, Ireland, Greece, Spain, France, Croatia, Italy, Cyprus, Latvia, Lithuania, Luxembourg, Hungary, Malta, Netherlands, Austria, Poland, Portugal, Romania, Slovenia, Slovakia, Finland and Sweden.For more information about the EU and its relations and cooperation with Indonesia, access:http://eeas.europa.eu/indonesiaAbout Global GatewayGlobal Gateway is the EU's positive offer to reduce the worldwide investment disparity and boost smart, clean and secure connections in digital, energy and transport sectors, and to strengthen health, education and research systems. The European Commission and the EU Member States launched it in 2021.The Global Gateway strategy embodies a Team Europe approach that brings together the European Union, EU Member States, and European development finance institutions and private sector actors. Together, Team Europe has mobilised €306 billion in public and private investments, creating essential links rather than dependencies, and closing the global investment gap. Supporting EU values and interests, the focus of the Global Gateway strategy is on smart investments in quality infrastructure, respecting the highest social and environmental standards and delivering transformational impacts for the people. Contacts: PT PLN PerseroGregorius Adi Trianto - Executive Vice President Corporate Communication & CSR PLNTel. 021 7261122 - Facs. 021 7227059AFD Indonesia afdjakarta@afd.fr Embassy of France to Indonesia, Timor-Leste and ASEAN presse.jakarta-amba@diplomatie.gouv.fr EU Delegation to Indonesia delegation-indonesia-info@eeas.europa.eu