France and the EU strengthen their partnership with Indonesia for the acceleration of the energy transition

Today, Agence française de développement (AFD), the European Union (EU), Indonesia’s Ministry of Energy and Mineral Resources (MEMR), and the State Electricity Company (PLN) officially launched the Indonesia Energy Transition Facility (IETF), a €14.7m technical assistance programme.

This ambitious programme, highlighting the commitment of France and the EU under the Just Energy Transition Partnership (JETP), aims to support a sustainable and inclusive energy transition in Indonesia.

A programme at the heart of Indonesia's Energy Transition

Spanning five years (2025–2030), the IETF programme is funded by a grant provided by the EU (€10.6 million) and AFD (€4.1 million). This programme supports France's €500 million commitment to the Just Energy Transition Partnership (JETP).

The programme is structured around two key components:

• Policy support: Facilitating a just energy transition by developing regulatory frameworks that promote sustainable and inclusive practices (environment, gender, etc.) while aiming to attract private investment.
• Project preparation and implementation: Supporting the development of renewable energy and transmission projects with high environmental and social standards, and strengthening the capacities of state owned enterprises of the energy sector.

A launch marked by international collaboration

The programme was officially launched during an event in Jakarta, attended by more than 100 national and international stakeholders, including representatives from the MEMR, PLN, the EU Delegation, the French Embassy to Indonesia and AFD, as well as development organisations and private sector stakeholders.

“In 2024, the realisation of greenhouse gas emission reductions in the energy sector reached 147.61 million tons of CO₂ equivalent, exceeding our target of 142 million tons. This means we are still on track for emission reductions. To support the energy transition, the government, through MEMR, is fostering strategic cooperation with various stakeholders. With AFD, as we are discussing today, we hope this collaboration will accelerate Indonesia's transformation towards a greener, more environmentally friendly, and sustainable energy system" said Secretary of the MEMR Dadan Kusdiana.

“PLN is committed to driving Indonesia’s energy transformation. We highly appreciate AFD and the French Government for this commitment, which will strengthen PLN’s efforts in providing clean and sustainable energy for the country. This partnership signifies the commitment of international communities to address the global climate change crisis, this challenge can only be addressed through a unified approach" commented Darmawan Prasodjo, President Director, PLN.

“In the context of the 75th Anniversary of the diplomatic relationships between Indonesia and France, this launch of IETF confirms France's long-term commitment to Indonesia - the area of energy transition being one of the key chapter for our cooperation” highlighted Fabien Penone, French Ambassador to Indonesia, Timor Leste and for ASEAN.

“The JETP is delivering tangible support for Indonesia’s energy transition, aligning with the Government of Indonesia’s objectives on energy security and investment mobilisation. The launch of IETF, a joint initiative with France, AFD, MEMR, and PLN, is a key milestone in this journey. As a key JETP partner, the EU remains committed to accelerating clean energy and creating an enabling environment for sustainable investments. Team Europe—including the EU, the European Investment Bank, Denmark, France, Germany, and Italy—has pledged €3.5 billion in grants and concessional loans under the JETP. Today’s new EU grant contribution of €10.6 million for the IETF further reinforces our support for sustainable infrastructure under our Global Gateway strategy. Indonesia’s role in the global green transition is vital, and we remain fully engaged to work with Indonesia in a Team Europe approach to drive sustainable economic growth and energy security” said Diana Acconcia, Director for International Affairs and Climate Finance, Directorate-General for Climate Action (CLIMA), at the European Commission.

“AFD has a long partnership with PLN and with the MEMR with whom we work both at public policy and project levels. By combining global and local approaches and by providing expertise in addition to investment funds, we collectively build a full collaboration on energy transition” stressed Yann Martres, AFD Country Director in Indonesia.

With this ambitious initiative, AFD, the EU and its partners reaffirm their strategic role in combating climate change and supporting the Government of Indonesia towards a just, sustainable, and inclusive energy transition.

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About PLN Persero

PT PLN (Persero) is a state-owned electricity company that continues to commit and innovate in providing the best service for customers. PLN carries the Transformation 2.0 agenda with a vision of becoming a Top 500 Global Company and becoming the number 1 choice for customers for Energy Solutions through business growth initiatives, end-to-end digitalisation implementation, implementing energy transitions to support the achievement of Net Zero Emissions (NZE), and performing business activities with world-class human resources.

About AFD

Agence française de développement (AFD) Group finances, supports and accelerates the transitions necessary for a more just and resilient world. It thus contributes to implementing France’s policy on sustainable development and international solidarity. It is with and for communities that we build, with our partners, solutions in more than 160 countries, as well as in 11 French overseas departments and territories.

AFD’s objective: to reconcile economic development with the preservation of common goods (the climate, biodiversity, peace, gender equality, education and health). Our teams are involved in more than 3,600 projects in the field, which are part of the commitment of France and the French people to fulfilling the Sustainable Development Goals (SDGs). For a world in common.

AFD started its operations in Indonesia in 2007 with a mandate focusing on the fight against climate change. Since then, it has mobilised more than €3.5 billion of financing in Indonesia, aiming at contributing to the achievement of the SDGs and to preserve common good. www.afd.fr/en.

About the EU

The European Union (EU) is the economic and political union of 27 Member States. Together, the EU has built a zone of stability, democracy and sustainable development while maintaining cultural diversity, tolerance and individual freedom. In 2012, the EU was awarded the Nobel Peace Prize for advancing the goals of peace, reconciliation, democracy and human rights in Europe. The EU is the world's largest trading bloc, and the world's largest source and destination of foreign direct investment. Collectively, the EU and its Member States are the largest donors of Official Development Assistance (ODA), providing close to half of ODA globally.

The 27 Member States of the EU (in protocol order) are: Belgium, Bulgaria, Czech Republic, Denmark, Germany, Estonia, Ireland, Greece, Spain, France, Croatia, Italy, Cyprus, Latvia, Lithuania, Luxembourg, Hungary, Malta, Netherlands, Austria, Poland, Portugal, Romania, Slovenia, Slovakia, Finland and Sweden.

About Global Gateway

Global Gateway is the EU's positive offer to reduce the worldwide investment disparity and boost smart, clean and secure connections in digital, energy and transport sectors, and to strengthen health, education and research systems.

The Global Gateway strategy embodies a Team Europe approach that brings together the EU, EU Member States, and European development finance institutions. Together, Team Europe aims to mobilise up to €300 billion in public and private investments from 2021 to 2027, creating essential links rather than dependencies, and closing the global investment gap.