UAE Masdar, PLN collaborates with Develop Renewable Energy in Indonesia

Photo by PJB

JAKARTA (TheInsiderStories) – Masdar, Abu Dhabi’s renewable energy company and PT Pembangkitan Jawa-Bali (PJB), unit of state-owned power producer PT Perusahaan Listrik Negara (PLN), signed a Memorandum of Understanding (MoU) with on Monday to explore areas of collaboration on renewable energy projects in Indonesia.

The MoU was signed by Iwan Agung Firstantara, President Director of PJB and Bader Al Lamki, Executive Director Clean Energy of Masdar, in the presence of Rini Soemarno, Minister of State Owned Enterprises and Mohamed Jameel Al Ramahi, Chief Executive Officer  of Masdar.

Under the terms of the MoU, the partnership will focus on potential projects within the Java-Bali and Sumatra regions. Both companies has ambitious targets to achieve 23 percent renewable energy use by 2025 and 31 percent by 2050.

“We believe this memorandum of understanding will bring success to renewable energy development and implementation in Indonesia,” said Iwan Agung Firstantara, President Director of PT PJB in press statement.

“We look forward to further developing our excellent relationship with PT PJB to help unlock Indonesia’s vast potential for renewable energy,” said Al Lamki.

Previously PLN’s Planning Director Nicke Widyawati said, the company plans to build a floating photovoltaic solar power plant in Cirata Reservoir, West Java. The company is now conducting a feasibility study together with Masdar.

PJB is the operator of Cirata solar plant, which has 8×126-megawatts (MW) capacity. The partnership between the two companies will use an independent power producer (IPP) scheme.

PLN is also eyeing the technology used by Masdar to develop solar plants in their home country, with power-generating capacities amounting to 150 MW and 200 MW. UAE sells solar power for just US$0.0242 per kWh, far cheaper than Indonesia’s photovoltaic power plants $0.22 per kWh.

Meanwhile, other PLN’s unit PT Indonesia Power, is set to build a coal-based power plant in Semarang, Central Java and its expected will begin operating in 2020.

According to Indonesia Power’s President Director Sripeni Inten Cahyanithe, the project is worth Rp4.8 trillion and will provide an additional supply of electricity amount into 780 MW or equal to supplying 5 million households.

“This power plant is one of the implementations of the government’s 35,000 MW power project,” said Sripeni.

PJB is an integrated power generation company in Indonesia. Currently PJB manages more than 12 GW of plants, with coal, gas and water fuel. PT PJB continues to diversify its business into the clean energy market to meet the EBT mix target in Indonesia and also contribute to efforts to reduce global carbon emissions.

According to research by the International Renewable Energy Agency, IRENA, Indonesia has the potential for more than 700 gigawatts of renewable energy based power generation, including 532.6 gigawatts of solar power.

PJB has established since 1995, has vision to become a leading power generation company in Indonesia with a world-class standards. Initially, PJB it was only an power-generator business, utilizing six electrity power plants namely Gresik Power Plant (2.225 MW), Paiton Power Plant (800 MW), Muara Karang Power Plant (1.200 MW), Muara Tawar Plant (920 MW), Cirata Power Plant (1.008 MW), and Brantas Power Plant (247 MW).

Now, PT PJB develop and managed other diverse businesses related to power generations, among others: Operation and Maintenance Power Station Service (O&M), Engineering, Procurement and Contractor (EPC), power plant consultant, education and training of power plant management, education and training of renewable energy, and other businesses in order to maximize the potential of the company.

On top of that, PT PJB built subsidiaries in Operation and Maintenance, in Engineering Procurement and Contractor (EPC), and entered a joint-venture to develop new power stations as well as manage plant service Operation and Maintenance business.

Masdar is a renewable energy company from Abu Dhabi that seeks to promote the development, commercialization and deployment of clean energy technologies and solutions. The company is the link between the current fossil fuel economy and the future energy economy.

Masdar owns Mubadala Development Company PJSC, a state-owned strategic investment firm of Abu Dhabi. Masdar is dedicated to the UAE’s long-term vision for energy and water in the future.

Over the last ten years, Masdar has invested funds in the EBT project with a combined value of $8.5 billion, in which Masdar’s contribution reached $2.7 billion.

Internationally, Masdar Clean Energy has invested in the development of some of world’s highest-profile utility-scale renewable energy projects including Torresol, a joint venture with SENER that operates 120MW worth of CSP plants in Spain; and the 630MW London Array offshore wind farm in the Thames Estuary.

Indonesia is the largest country in ASEAN with a population of more than 250 million people. Based on International Renewable Energy Agency (IRENA) research, Indonesia has the potential to develop EBT plants of more than 700 giga-watts (GW), including 532.6 GW of solar energy.

(Written by Linda Silaen, Email: