The Asian Infrastructure Investment Bank has approved a USD 21 million non-sovereign financing for Indonesia’s Pasuruan 100 MW solar PV project, marking another step in the country’s efforts to expand its renewable energy capacity and reduce carbon emissions. The project is being supported under the Proyek Hijaunesia Staple Financing initiative and will be developed as a greenfield, ground-mounted solar power plant in Pasuruan, East Java.

The financing is being co-arranged with the Asian Development Bank acting as the lead partner. The project will follow the Asian Development Bank’s Safeguard Policy Statement along with all applicable Indonesian environmental and social regulations. The solar plant will be built on around 401.5 acres of permanent land, with an additional 21.1 acres required for transmission lines. The development is expected to affect about 85 households in the project area.

To address potential environmental risks, the project includes mitigation measures for issues such as pollution control and biodiversity protection. Social management plans have also been prepared, focusing on livelihood restoration for affected communities and the integration of gender mainstreaming practices. Strong monitoring systems and stakeholder engagement mechanisms are planned throughout the project lifecycle.

The project is sponsored by PT PLN Indonesia Power Renewables in partnership with Vena Energy Indonesia. It is scheduled for concept review in November 2024, with final financing approval targeted for December 2025. Once operational, the Pasuruan solar project is expected to contribute meaningfully to Indonesia’s clean energy transition.