Indonesia Secures €14.7 Million Grant from EU and France for Energy Transition

Jakarta, The Gulf Observer: Indonesia has secured a €14.7 million (approximately US$15.2 million) grant from the European Union (EU) and France to support the country’s energy transition efforts. The funding, channeled through the French Development Agency (Agence Française de Développement, AFD), will be used to enhance the capacity of Indonesia’s state-run electricity company, PLN, and advance energy transition initiatives led by the Ministry of Energy and Mineral Resources.

Secretary General of the Ministry of Energy and Mineral Resources, Dadan Kusdiana, announced the grant during the Kick-Off Meeting for the Indonesia Energy Transition Facility (IETF) in Jakarta on Wednesday. He detailed that PLN will receive 44 percent of the total funds, amounting to approximately €6.5 million, to strengthen its role in renewable energy adoption and transmission projects. The remaining funds will be allocated to the ministry’s various initiatives.

“We also have other forms of cooperation, including mineral partnerships to promote sustainable minerals,” Kusdiana noted, emphasizing the broader scope of collaboration between Indonesia and its international partners.

PLN Finance Director, Sinthya Roesli, highlighted the grant’s role in preparing energy transition projects, providing technical assistance, and supporting the expansion of renewable energy transmission and distribution. She also underscored the importance of capacity building and institutional improvements to sustain long-term energy transition efforts.

French Ambassador to Indonesia, Timor-Leste, and ASEAN, Fabien Penone, described the IETF as a significant milestone in accelerating Indonesia’s energy transition, with substantial benefits for the region. He emphasized that the grant will be directed toward two key components: support for energy policies and the development of renewable energy and transmission projects.

“Achieving a successful energy transition requires significant investment, strong partnerships, innovation, and a long-term commitment to balancing environmental, economic, and social goals,” Penone stated.

He further stressed that the IETF aligns with the principles of a just energy transition, aiming to create new economic opportunities, protect jobs, and support vulnerable communities. The collaboration between Indonesia, France, and the EU will leverage their combined expertise to advance renewable energy adoption and address the challenges of transitioning to a sustainable energy system.

The initiative marks a step forward in Indonesia’s commitment to reducing carbon emissions and expanding its renewable energy sector, reinforcing international cooperation in achieving global climate goals.