Indonesia has secured USD 60 million in project-level financing for the construction and operation of a floating solar photovoltaic (PV) power plant at the Saguling Reservoir in West Java. The funding, announced on Tuesday, comes from Standard Chartered, Germany’s development finance institution DEG, and France’s Proparco. 

The project, known as the Saguling floating solar PV plant, will have an installed capacity of 92 megawatt-peak (MWp) and is expected to begin operations in 2026. Once operational, the plant is projected to offset over 63,000 tonnes of carbon emissions annually, according to the Glasgow Financial Alliance for Net Zero (GFANZ). 

The facility will be developed and operated by ACWA Power, a Saudi-based renewable energy company, in partnership with PLN Indonesia Power, a subsidiary of Indonesia's state-owned electricity provider PLN. 

This financing marks the first project-level deal under Indonesia’s Just Energy Transition Partnership (JETP) framework following the withdrawal of the United States from the initiative earlier this year. Previously, the US had pledged more than USD 2 billion toward JETP Indonesia, including non-concessional loans, multilateral development bank guarantees, and grants. 

The JETP program, initially launched with USD 21.6 billion in pledges, aims to accelerate Indonesia’s transition from coal to renewable energy. Of that amount, USD 11.6 billion is expected from the public sector, specifically from donor countries forming the International Partners Group (IPG), which includes Canada, Denmark, France, Germany, Italy, Japan, Norway, the UK, and the EU. The remaining USD 10 billion is intended to be mobilized from the private sector, coordinated by GFANZ, whose members include Bank of America, Citi, Deutsche Bank, HSBC, Macquarie, MUFG, and Standard Chartered. 

France has committed over EUR 450 million (USD 513 million) to support Indonesia’s energy transition under JETP. French Ambassador Fabien Penone highlighted the financing of the Saguling plant as a sign of France’s commitment to innovative renewable energy development in Indonesia. 

Germany and Japan have now assumed co-leadership of the JETP initiative in Indonesia. German Ambassador Ina Lepel stated that the Saguling agreement marks a new phase of collaboration between IPG and GFANZ, where JETP projects have reached sufficient maturity to attract investment. 

According to Indonesian Coordinating Economic Minister Airlangga Hartarto, the Saguling project represents global cooperation and a shared commitment to accelerating the clean energy transition and supporting sustainable growth.