China Energy Delegation Meets Presidential Envoy to Discuss Renewable Energy Investment in Indonesia
Setiawan Ichlas, the President's Special Envoy for Economy and Banking, received a delegation from China Energy Investment Corporation (China Energy) at his office at 18 Parc SCBD Tower C, 11th Floor, on Saturday morning (24/5). The meeting discussed a number of investment cooperation opportunities in the energy sector, particularly new and renewable energy in Indonesia.
The China Energy delegation was led by Zou Lei, Chairman of China Energy. Setiawan Ichlas was accompanied by several officials, including Investment and Downstreaming Minister/Head of the Investment Coordinating Board (BKPM) Rosan Perkasa Roeslani, PLN President Director Darmawan Prasodjo, Deputy Investment and Downstreaming Minister/Deputy Head of BKPM Todotua Pasaribu, and Ustaz Adi Hidayat, Adviser to the President's Special Envoy for Economy and Banking.
In his welcoming remarks, the Presidential Special Envoy expressed that it was an honour to receive the China Energy delegation. Setiawan Ichlas expressed hope that cooperation between China Energy and Indonesia could become closer and mutually beneficial.
Rosan, who also serves as Chief Executive Officer of the Danantara sovereign wealth fund (BPI Danantara), noted that China is the second-largest investor in Indonesia. "We are also very open. Danantara can invest together with the business community, either through subsidiaries or through our direct investment," Rosan said.
China Energy has already invested in Indonesia, including in the Jawa 7 coal-fired power plant project in partnership with PLN. The plant has an installed capacity of 2x1,050 MW. Located in Serang, Banten, it is the first independent power producer (IPP) project from China operating in Indonesia, utilising ultra-supercritical and environmentally friendly technology.
Darmawan Prasodjo revealed that over the next 15 years, PLN plans to add 100 gigawatts (GW) of power generation capacity, with a target of 75 per cent sourced from new and renewable energy. Indonesia requires substantial funding for power plant procurement and supporting transmission network infrastructure.
One of the challenges is the mismatch between the locations of hydro and geothermal resources (renewable energy) and the centres of demand and business. "In 10 years, we plan to build a power grid reaching more than 50,000 km. The total investment funding requirement reaches US$171 billion," Darmawan said.
In response, Zou Lei affirmed that Indonesia possesses significant energy resources and that investors are greatly facilitated by government support. "Our company, China Energy Investment Corporation, is the largest state-owned energy enterprise in China," Zou Lei stated.
With net profits of US$18 billion, the former Chairman of Datang China expressed optimism about future investment in Indonesia. He also emphasised that China Energy is the largest wind power plant operator in China, with a capacity of 73 GW.
"We can bring and build wind power manufacturing plants in Indonesia. The cost will be lower and will help Indonesia's energy transition programme," Zou Lei said.
Additionally, Zou Lei offered cooperation in coal procurement. China Energy intends to increase its coal imports from Indonesia, currently at 20 million tonnes per year. "China's annual demand reaches 4 billion tonnes. Our consumption accounts for one-sixth of that total," Zou Lei concluded.
The China Energy delegation was led by Zou Lei, Chairman of China Energy. Setiawan Ichlas was accompanied by several officials, including Investment and Downstreaming Minister/Head of the Investment Coordinating Board (BKPM) Rosan Perkasa Roeslani, PLN President Director Darmawan Prasodjo, Deputy Investment and Downstreaming Minister/Deputy Head of BKPM Todotua Pasaribu, and Ustaz Adi Hidayat, Adviser to the President's Special Envoy for Economy and Banking.
In his welcoming remarks, the Presidential Special Envoy expressed that it was an honour to receive the China Energy delegation. Setiawan Ichlas expressed hope that cooperation between China Energy and Indonesia could become closer and mutually beneficial.
Rosan, who also serves as Chief Executive Officer of the Danantara sovereign wealth fund (BPI Danantara), noted that China is the second-largest investor in Indonesia. "We are also very open. Danantara can invest together with the business community, either through subsidiaries or through our direct investment," Rosan said.
China Energy has already invested in Indonesia, including in the Jawa 7 coal-fired power plant project in partnership with PLN. The plant has an installed capacity of 2x1,050 MW. Located in Serang, Banten, it is the first independent power producer (IPP) project from China operating in Indonesia, utilising ultra-supercritical and environmentally friendly technology.
Darmawan Prasodjo revealed that over the next 15 years, PLN plans to add 100 gigawatts (GW) of power generation capacity, with a target of 75 per cent sourced from new and renewable energy. Indonesia requires substantial funding for power plant procurement and supporting transmission network infrastructure.
One of the challenges is the mismatch between the locations of hydro and geothermal resources (renewable energy) and the centres of demand and business. "In 10 years, we plan to build a power grid reaching more than 50,000 km. The total investment funding requirement reaches US$171 billion," Darmawan said.
In response, Zou Lei affirmed that Indonesia possesses significant energy resources and that investors are greatly facilitated by government support. "Our company, China Energy Investment Corporation, is the largest state-owned energy enterprise in China," Zou Lei stated.
With net profits of US$18 billion, the former Chairman of Datang China expressed optimism about future investment in Indonesia. He also emphasised that China Energy is the largest wind power plant operator in China, with a capacity of 73 GW.
"We can bring and build wind power manufacturing plants in Indonesia. The cost will be lower and will help Indonesia's energy transition programme," Zou Lei said.
Additionally, Zou Lei offered cooperation in coal procurement. China Energy intends to increase its coal imports from Indonesia, currently at 20 million tonnes per year. "China's annual demand reaches 4 billion tonnes. Our consumption accounts for one-sixth of that total," Zou Lei concluded.