The Ministry of Finance and PT Perusahaan Listrik Negara (PT PLN), a state-owned electricity firm, have signed a subsidiary loan agreement (SLA) to finance a pumped storage hydropower project in Indonesia under the Java-Bali System.
The project will be developed under a loan of USD610 million, which includes a USD380 million grant from the World Bank and USD230 million financing from Asian Infrastructure Investment Bank (AIIB).
The hydropower project is also expected to support Indonesia’s energy transition away from coal-fired energy as well as aid the government achieve its target of increasing the share of renewable energy (RE) in the total power mix by 23 per cent by 2025 as well as attain net-zero emissions by 2060.