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NEXI signs Amendment of the MOU with PT PLN (Persero)

November 15, 2022
Nippon Export and Investment Insurance

Nippon Export and Investment Insurance (NEXI; Chairman and CEO: Atsuo Kuroda) has signed an Amendment of the Memorandum of Understanding Concerning Cooperation (Amendment) with PT PLN (Persero) (PLN), a state-owned electricity company in the Republic of Indonesia (Indonesia).

Sinthya Roesly, Director of Finance of PLN, and Hidenobu Teramura, Senior Managing Executive Officer, Member of Board of NEXI, have signed the Amendment on November 15, 2022, on the occasion of the G20 Summit during November 15 -16, 2022.

The Amendment is to the Memorandum of Understanding Concerning Cooperation1 concluded between NEXI and PLN at the Asia Green Growth Partnership Ministerial Meeting (AGGPM) Public-Private Forum held on April 25, 2022.

In line with NEXI’s LEAD Initiative2 launched in December 2020, the Amendment will provide financial support of a maximum of USD 500 million to PLN from NEXI to facilitate the decarbonization of Indonesia and aims to provide opportunities in introducing the technologies developed by Japanese companies to PLN. Through signing of the Amendment, NEXI intends to promote the efforts toward decarbonization in Indonesia’s electricity sector and to create business opportunities for Japanese companies in Indonesia by enhancing the relationship between NEXI and PLN.

The Amendment also aligns with the objectives of the Asia Energy Transition Initiative (AETI) and Asia Zero Emissions Community (AZEC) concept advocated by the Japanese government, given that it helps Indonesia in its path to achieve a realistic energy transition.

NEXI continues to actively support Japanese companies to expand their global business by reinforcing cooperation with other governmental enterprises.

＜Scope of Cooperation under the Amendment＞

  • 1. Providing financial support of a maximum of USD 500 million (of which USD 200 million is under discussion) to PLN in areas related to achieving a realistic energy transition in Indonesia.
  • 2. Providing opportunities to introduce technologies developed by Japanese companies.

Contact
Power Group, Structured and Trade Finance Insurance Department
Tel: +81-3-3512-7340

  • 1 NEXI News Release, April 25, 2022.
    https://www.nexi.go.jp/en/topics/newsrelease/2022042206.html
  • 2 In December 2020, NEXI announced the LEAD Initiative to respond to the business environment with and after the COVID-19. This initiative is intended to actively promote the underwriting of projects, with a focus on contributing to global carbon neutrality, solving social issues, and achieving the SDGs. Under this initiative, we aim to underwrite insurance of total value of JPY 1 trillion by the end of fiscal 2025, while diversifying our funding sources not only from traditional capital providers, but also from institutional investors, etc.
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