Danantara and PLN Forge Strategic Partnership for Renewable Energy Development

Accelerating Indonesia's Energy Transition

Danantara Investment Management (DIM), a subsidiary of Badan Pengelola Investasi Daya Anagata Nusantara (Danantara), has entered into a significant strategic partnership with PT Perusahaan Listrik Negara (PLN), Indonesia's state-owned electricity company. This collaboration aims to accelerate the development of renewable energy projects in Indonesia, marking a major step forward in the country's energy transition efforts.

Ambitious Targets and Investment Plans

The partnership has set an ambitious target of developing 20 GW of additional renewable energy capacity, with an estimated investment value of Rp 600 trillion (approximately US$ 36 billion). This massive investment is expected to significantly boost Indonesia's renewable energy infrastructure and contribute to the country's goal of increasing its renewable energy mix.

Implementation Strategy

The collaboration will be executed through a Head of Agreement (HoA) that outlines the terms of the partnership. Danantara will explore investment opportunities in various renewable energy projects through PLN's dedicated renewable energy subsidiaries: PLN Nusantara Renewables and PLN Indonesia Power Renewables. This structured approach ensures that the investment and development process is managed efficiently by experienced entities within the PLN group.

Significance for Indonesia's Energy Sector

This partnership represents a significant development in Indonesia's energy sector, demonstrating the government's commitment to expanding the country's renewable energy capacity. The scale of the investment and the capacity addition underscore the importance of collaboration between state-owned enterprises and specialized investment entities in driving Indonesia's energy transition forward.