Ecobiz.asia – Indonesia’s state-owned electricity company PT PLN (Persero) is exploring financing support from the Australian government for a project to strengthen power grid infrastructure in East Java and Bali, as part of broader cooperation on energy transition and electricity system resilience.
The proposed Eastern Java & Bali Grid Strengthening project is among the initiatives being discussed under a memorandum of understanding (MoU) between PLN and the Australian government. The two sides are exploring potential financing from Export Finance Australia (EFA) for transmission infrastructure, substations and distribution networks.
PLN Deputy President Director Yusuf Didi Setiarto said the partnership could give the company access to Australian technology, expertise and financing opportunities.
“Australian government support is important for PLN, whether in developing human resources, exchanging knowledge and technology, or exploring financing opportunities,” Didi said in a statement on Tuesday (Nov. 3).
The MoU also covers cooperation in energy transition, technology development, financing and investment, and human resource development.
Beyond infrastructure financing, PLN is exploring technical cooperation with Australia’s Commonwealth Scientific and Industrial Research Organisation (CSIRO) and the Department of Climate, Energy, the Environment and Water.
The proposed cooperation includes grid flexibility, battery energy storage systems (BESS) and more flexible power plant operations. These technologies are intended to improve the electricity system’s ability to accommodate renewable energy sources, whose output can fluctuate depending on weather and other natural conditions.
PLN is also working with Australia’s Department of Foreign Affairs and Trade (DFAT) on capacity-building programs focused on climate scenarios and power system resilience. The initiative aims to strengthen the use of climate scenario analysis in electricity planning and decision-making.
In human resource development, PLN and the Australian government, through the Australia-Indonesia Climate and Sustainable Infrastructure Partnership (KINETIK), are preparing a Three-Year Human Capital Development Roadmap for 2027–2030.
The roadmap is designed to align workforce development with Indonesia’s net-zero emissions target, priorities under the Electricity Supply Business Plan (RUPTL), and the principles of a just energy transition.
Australian Ambassador to Indonesia Roderick Brazier said PLN was an important partner in Indonesia’s energy transition, particularly in expanding electrification and developing electricity infrastructure.
“We want to be part of Indonesia’s energy transition journey and understand that PLN will play a central role in that electrification,” Brazier said. ***
