DEG, the German development finance institution, the French development finance institution Proparco and Standard Chartered have announced an agreement to finance the development, construction and operation of the Saguling floating solar photovoltaic (PV) plant as part of Indonesia’s Just Energy Transition Partnership (JETP).

The project mobilizes $60 million for the Indonesian JETP, increasing funding to accelerate Indonesia’s inclusive and ambitious energy transition, the trio said in a statement on last Friday.

Located in West Java, the plant is expected to reduce carbon emissions in the Indonesian power system by at least 63,100 tons a year and has an installed capacity of 92 MWp.

This will increase electricity production from solar in Indonesia by around 13 percent.

The plant is developed by two important players in their sectors, being PLN Indonesia Power, the largest power generation company in Southeast Asia, and ACWA Power, the world’s largest private company in water desalination, a leader in energy transition, and first mover into green hydrogen from the Kingdom of Saudi Arabia.

The Indonesian JETP launched in 2022 to mobilize capital to accelerate Indonesia’s clean energy transition and facilitate the deployment of affordable, clean energy that materially benefits the Indonesian economy.

Investment in the Saguling project represents a blueprint for future clean energy projects in Indonesia supported by public and private sector capital and will have a mobilizing effect.

“This announcement reflects the continued support for Indonesia’s JETP from key national governments and private sector partners, as well as their commitment to advancing our clean energy future,” said Airlangga Hartarto, Indonesia’s Coordinating Minister for Economic Affairs.

“By focusing on transformative projects in the power sector as demonstrated by this investment in the Saguling floating Solar PV plant, we are accelerating our energy transition while fostering sustainable economic growth,”

“We look forward to building on our collaboration with our international partners to unlock more clean energy opportunities and offer a model that other countries can follow,” he added.

It is noted that the governments of Canada, Denmark, France, the United Kingdom, Germany, Italy, Japan, Norway, and the European Union make up the International Partners Group, which is committed to supporting the Indonesia JETP through development finance.

The IPG works alongside the Glasgow Financial Alliance for Net Zero (GFANZ), a global coalition of leading financial institutions.

As of early 2025, Germany assumed co-leadership of the IPG in Indonesia’s JETP alongside Japan.

Through a working group convened by GFANZ, leading financial institutions–including Standard Chartered–committed to mobilizing private finance and facilitating investment to support Indonesia’s energy transition along with the IPG.

Together, the IPG and financial institutions have pledged to mobilize $20 billion.

“France actively supports Indonesia’s energy transition through the JETP and has already mobilized over 450 million Euros in this regard,

“The financing by the French development finance institution Proparco of the Saguling floating solar PV plant highlights our commitment to foster innovative renewable energies in Indonesia and to support its sustainable economic growth,” said Fabien Penone, Ambassador of France to Indonesia.

Meanwhile, German Ambassador Ina Lepel said this new financial agreement clearly shows the International Partners Group and GFANZ are closely working together to support Indonesia’s just energy transition.

“We enter now into a new phase, where more and more investment projects reach a degree of maturity where contracts can be signed,” she added.

Monika Beck, Member of DEG’s Management Board, commented that they are pleased to promote innovative renewable technologies together with their esteemed partners Standard Chartered Bank and Proparco in providing ACWA Power and Indonesia Power Renewables with a debt financing for developing their first floating solar project in Indonesia.

“As an impact investor DEG focuses on financing such sustainable transformation projects and is proud to have been the lead arranger in the transaction,” she added.

Françoise Lombard, Chief Executive Officer at Proparco said that Saguling is a cornerstone of Indonesia’s energy transition under the JETP.

“As AFD Group’s private sector arm, we finance public-private partnerships that complement AFD’s support for PLN and the Ministry of Energy,

“This marks Proparco’s first investment in floating solar technology, reaffirming our commitment to innovation,” she said.

According to her, in a country where land constraints pose challenges, floating solar offers a scalable solution to accelerate the transition.

“Moreover, this project underscores Proparco’s role in mobilizing private capital—an increasingly vital driver of a just energy transition,” she added.

Donny Donosepoetro OBE, Cluster Chief Executive Officer, Indonesia and ASEAN Markets at Standard Chartered said the bank is committed to supporting Indonesia’s transition to a more sustainable future by financing renewable energy projects that support enduring economic growth alongside sustainable outcomes.

“Our participation in the financing of the Saguling Floating Solar PV Plant is testament to our dedication to mobilising private capital for clean energy investment, particularly through partnerships like JETP,” he added.

Mary Schapiro, Vice Chair of GFANZ, said this milestone transaction underscores the importance of public-private partnerships to unlock the capital needed for Indonesia’s green energy expansion and can serve as an example for future clean energy projects.

“Alongside the IPG, GFANZ is committed to working with financial institutions focused on mobilizing private finance and facilitating investment to help scale Indonesia’s energy transition through the JETP,” she added.

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