DEG, the German development finance institution; Proparco, the French development finance institution; and Standard Chartered have agreed to fund the development, building, and operation of the Saguling floating solar power plant. This project is part of Indonesia’s Just Energy Transition Partnership (JETP).
The project brings in $60 million for Indonesia’s Just Energy Transition Partnership (JETP), helping to boost funding and speed up Indonesia’s inclusive and ambitious energy transition, the three organizations said in a statement last Friday.
The plant, located in West Java, is expected to cut carbon emissions in Indonesia’s power system by at least 63,100 tons annually. It has an installed capacity of 92 MWp.
This will boost solar electricity production in Indonesia by about 13 percent.
The plant is being developed by two major companies: PLN Indonesia Power, the largest power generation company in Southeast Asia, and ACWA Power, the world’s biggest private company in water desalination. ACWA Power is also a leader in energy transition and the first to move into green hydrogen in Saudi Arabia.
The Indonesian JETP was launched in 2022 to gather funds that will help speed up Indonesia’s shift to clean energy. It aims to make clean energy more affordable and bring significant benefits to Indonesia’s economy.
Investing in the Saguling project sets an example for future clean energy projects in Indonesia, backed by both public and private funding, and will help attract more investment.
“This announcement shows ongoing support for Indonesia’s JETP from important national governments and private sector partners, as well as their dedication to building a clean energy future,” said Airlangga Hartarto, Indonesia’s Coordinating Minister for Economic Affairs.
“By focusing on major projects like the Saguling floating Solar PV plant, we are speeding up our energy transition and supporting long-term economic growth.”
“We’re excited to keep working with our international partners to create more clean energy projects and set an example that other countries can follow,” he added.
The International Partners Group, which supports Indonesia’s JETP with development funding, includes the governments of Canada, Denmark, France, the UK, Germany, Italy, Japan, Norway, and the European Union.
The International Partners Group (IPG) works together with the Glasgow Financial Alliance for Net Zero (GFANZ), a global group of top financial institutions.
As of early 2025, Germany joined Japan as co-leader of the International Partners Group (IPG) supporting Indonesia’s JETP.
A working group led by GFANZ brought together top financial institutions, like Standard Chartered, that have promised to help raise private funding and support investment for Indonesia’s shift to clean energy alongside the IPG.
The IPG and financial institutions have jointly promised to raise $20 billion in funding.
“France is strongly supporting Indonesia’s shift to clean energy through the JETP and has already provided over 450 million euros to help,”
“The funding from France’s development finance group Proparco for the Saguling floating solar power plant shows our commitment to support new renewable energy projects in Indonesia and help its economy grow in a sustainable way,” said Fabien Penone, France’s Ambassador to Indonesia.
German Ambassador Ina Lepel said this new funding deal clearly shows that the International Partners Group and GFANZ are working closely together to support Indonesia’s fair and inclusive shift to clean energy.
“We are now entering a new phase where more investment projects are ready and contracts can start being signed,” she added.
Monika Beck, a member of DEG’s Management Board, said they are happy to support innovative renewable technologies with their respective partners, Standard Chartered Bank and Proparco. They are providing ACWA Power and Indonesia Power Renewables with loan funding to develop their first floating solar project in Indonesia.
“As an impact investor, DEG focuses on funding sustainable transformation projects and is proud to have played a leading role in arranging this deal,” she added.
Françoise Lombard, CEO of Proparco, said that the Saguling project is a key part of Indonesia’s energy shift under the JETP.
“As the private sector branch of AFD Group, we fund public-private partnerships that work alongside AFD’s support for PLN and the Ministry of Energy,”
“This is Proparco’s first investment in floating solar technology, showing our strong commitment to innovation,” she said.
She said that in a country where limited land is a challenge, floating solar provides a solution that can be scaled up to speed up the energy transition.
“Additionally, this project highlights Proparco’s role in bringing in private funding, which is becoming an essential part of a fair energy transition,” she added.
Donny Donosepoetro OBE, CEO for Indonesia and ASEAN Markets at Standard Chartered, said the bank is dedicated to helping Indonesia move towards a more sustainable future by funding renewable energy projects that promote long-term economic growth and sustainable results.
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