JAKARTA – Today in Jakarta, the U.S. Trade and Development Agency awarded a grant to PT Medco Power Indonesia (Medco) for a feasibility study to help develop an estimated 111-megawatt wind power plant in West Sumbawa, in Indonesia’s West Nusa Tenggara province. The project will facilitate the replacement of high-polluting sources of power with clean, renewable energy. Medco President Director Eka Satria and USTDA Regional Director for the Indo-Pacific Verinda Fike participated in a grant signing ceremony witnessed by U.S. Embassy Jakarta Deputy Chief of Mission Michael F. Kleine.
DCM Kleine said: “The U.S. government is proud to partner with Indonesia to promote renewable energy solutions. This project demonstrates the strong commitment of the United States to help Indonesia in its clean energy transition towards achieving net zero emissions.”
The IDR15B ($1,046,434) grant supports Indonesia’s clean energy transition under the Just Energy Transition Partnership (JETP). The Just Energy Transition Partnership is an Indonesian-led partnership based on Indonesia’s own ambitious climate targets. The JETP Secretariat is currently drafting the Comprehensive Investment and Policy Plan (CIPP) that will guide JETP financing over the next three to five years.
USTDA’s study will provide Medco with a detailed wind resource assessment, a preliminary geotechnical analysis, a power plant and interconnection system design, a grid integration study, a preliminary environmental and social impact assessment, a risk assessment, a cost and economic analysis, and an implementation plan.
“As one of the leading clean and renewable power companies in Indonesia, Medco Power continues to support the Indonesian Government’s commitment to climate change mitigation and targets towards emissions reduction and net zero goals,” said Eka Satria, President Director of PT Medco Power Indonesia. “This signing is also part of our climate change strategy in developing the electricity portfolio from renewable energy.”
“USTDA’s partnership with Medco will advance Indonesia’s clean energy transition and offer communities in West Sumbawa a renewable source of power,” said Enoh T. Ebong, USTDA’s Director. “We anticipate strong interest by U.S. industry to partner with Medco on the implementation of this priority project and believe that the flexibility and relevance of our project preparation tools to Indonesia’s infrastructure needs makes us natural partners.”
The $20 billion investment in Indonesia’s Just Energy Transition Partnership includes $10 billion in public sector pledges, and $10 billion from private financial institutions coordinated by the Glasgow Financial Alliance for Net Zero (GFANZ). Under the JETP, the International Partners Group (IPG) is bringing all available tools to bear to support Indonesia’s energy transition, including concessional financing with below market rates.