AIIB approves US$21M financing for 100 MW Pasuruan Solar Power Project

The Asian Infrastructure Investment Bank (AIIB) has approved US$21 million (Rp352.5 billion) in non-sovereign financing for the 100-megawatt Pasuruan solar power project in Indonesia, marking another step in the country’s efforts to expand renewable energy capacity and reduce carbon emissions.

According to a report by solarquarter.com, the project is part of Indonesia’s Hijaunesia Green Project Financing initiative and will be developed as a new greenfield, ground-mounted solar power plant in Pasuruan, East Java.

The Asian Development Bank (ADB), Indonesia’s key development partner, is acting as the lead arranger for the renewable energy financing. The project will comply with ADB’s Safeguard Policy Statement, as well as all applicable Indonesian environmental and social regulations.

The Pasuruan solar power plant is being sponsored by State energy company PT PLN Indonesia Power Renewables in partnership with Vena Energy Indonesia. Once operational, the facility is expected to make a meaningful contribution to Indonesia’s clean energy transition and long-term decarbonization goals.

The project will be constructed on approximately 401.5 hectares (Ha) of permanent land, with an additional 21.1 Ha required for transmission corridors. Development activities are expected to affect around 85 households within the project area.

To address potential environmental and social risks, the project includes mitigation measures covering pollution control and biodiversity protection. A comprehensive social management plan has also been prepared, focusing on livelihood restoration for affected communities and the integration of gender mainstreaming practices.

Robust monitoring systems and stakeholder engagement mechanisms will be implemented throughout the project lifecycle to ensure compliance with environmental, social, and governance standards.