SHARM EL SHEIKH, Egypt, Sept. 29, 2023 /PRNewswire/ -- The Asian Infrastructure Investment Bank (AIIB) is collaborating with PT Perusahaan Listrik Negara (PT PLN) and PT Sarana Multi Infrastruktur (PT SMI) to implement Indonesia's Nationally Determined Contributions (NDC) milestones under the Paris Agreement.

On the sidelines of the 2023 AIIB Annual Meeting in Sharm El Sheik, the Bank signed partnership documents formalizing the parties' commitment to work together toward achieving Indonesia's greenhouse gas reduction target. The partnerships aim to facilitate Indonesia's transition from conventional energy sources to renewable and sustainable alternatives.

"This is a crucial decade for climate action," said Jin Liqun, AIIB President and Chair of the Board of Directors. "As Southeast Asia's largest economy, Indonesia will be at the forefront of the clean energy transition. By partnering with key energy partners in Indonesia, AIIB is supporting Indonesia's climate ambitions by unlocking and mobilizing additional capital to increase access to clean energy."

"PT SMI has the mandate and authority to collaborate with various institutions and stakeholders to develop a financing and investment framework to support clean energy projects," said PT SMI President Director Edwin Syahruzad. "Partnership between stakeholders is needed to jointly carry out this energy transition in various cooperation sectors, including social, environmental, technological and financing. With this joint effort, we believe that—in the near future—we can have clean energy that is sustainable, fair and affordable."

"Collaboration and partnerships are critical to advancing Indonesia's energy transformation," said PT PLN CEO Darmawan Prasodjo. "As a result, PT PLN will keep advancing relationships with diverse stakeholders to realize the energy transition from conventional to new, renewable and sustainable energy. Of course, financial support is crucial for accelerating Indonesia's energy transition. This partnership reflects PLN's objective of boosting the share of renewable energy in Indonesia's energy mix."

This collaboration reflects the shared commitment of AIIB, PT PLN and PT SMI to promote sustainable development and address the challenges of climate change. AIIB intends to provide long-term financing to support the Indonesian Government's efforts in operationalizing its transition into a low-carbon energy system. This financing will complement existing national and multilateral efforts, such as the Just Energy Transition-Partnership, while fostering a comprehensive and integrated approach to energy transition in Indonesia.

AIIB, PT PLN and PT SMI will explore opportunities for project preparation, knowledge sharing, capacity building and technical assistance in the field of energy transition. By leveraging their technical expertise and financial resources, all three institutions aim to accelerate the deployment of clean energy technologies and contribute to a greener and more sustainable future for Indonesia and for the world.

About AIIB

The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank whose mission is financing the Infrastructure for Tomorrow—infrastructure with sustainability at its core. We began operations in Beijing in January 2016 and have since grown to 109 approved members worldwide. We are capitalized at USD100 billion and Triple-A-rated by the major international credit rating agencies. Collaborating with partners, AIIB meets clients' needs by unlocking new capital and investing in infrastructure that is green, technology-enabled and promotes regional connectivity.