Japan’s Sumitomo, Indonesia partner on renewable energy

Japanese trading house Sumitomo has partnered with Indonesian state-run utility PLN to develop new renewable energy power generation projects in Indonesia, and to study the early closure of coal-fired power plants in the southeast Asian country.

Sumitomo announced on 17 November that it has signed an initial agreement with PLN to promote cleaner energy use. This is a new form of collaboration to "co-create a comprehensive ecosystem, attracting investment in green industries that require renewable energy," said Sumitomo.

But more details have not been provided. "We are still at the joint study stage to explore potential projects," a Sumitomo representative told Argus. "PLN seems to have a strong interest in early closure of coal-fired power plants but so far there are no concrete projects in sight," the representative added.

Sumitomo also said that PLN may consider integrating the potential projects into a recently unveiled a $20bn plan for Indonesia's energy transition. The plan is led by the Japanese and the US government.

State-owned Japan Bank for International Cooperation (JBIC) has also signed decarbonisation deals with Indonesia's state-run oil and utility companies.

By Yusuke Maekawa