In a boost for Indonesia’s clean energy push, two development finance institutions ( DFIs ), DEG of Germany and Proparco of France, along with London- and Hong Kong-listed bank Standard Chartered, have jointly committed to financing the 92 megawatt-peak Saguling floating solar photovoltaic project.

The initiative, developed by PLN Indonesia Power and ACWA Power, has mobilized US$60 million in new capital under the Just Energy Transition Partnership ( JETP ), becoming the first solar project in Indonesia to do so.

The Saguling plant, located in the Indonesian province of West Java, is expected to deliver a 13% boost to the nation’s solar electricity output and offset at least 63,100 tonnes of carbon emissions annually.

The project’s scale and impact are a pivotal first step for JETP – a multi-stakeholder initiative launched in 2022 to accelerate Indonesia’s shift from coal dependency towards affordable, clean energy.

The Saguling solar plant adds to the US$1.2 billion already committed to JETP projects, signalling that momentum is building for future deals that blend public support with private investment.

Standard Chartered, one of the earliest private sector financiers to engage with the JETP framework, underscores the catalytic role of blended finance in the energy transition, with Donny Donosepoetro, the bank’s cluster CEO for Indonesia and Asean markets, saying: “Our participation in the financing of the Saguling floating solar PV plant is testament to our dedication to mobilizing private capital for clean energy investment, particularly through partnerships like JETP.”