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

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

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 Future

Spanning 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 Partners

The 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 Transformation

The 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 programme 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. 

"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).

“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.

“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.

“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.

This 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.