Finland and Indonesia have signed a MoU to enhance cooperation in sustainable, clean, and renewable energy. The agreement aims to deepen technical and economic collaboration and strengthen the access for Finnish companies in Indonesia’s energy market. It establishes a framework for technological and business partnerships between the two countries within the energy sector. Finnish energy firms are increasingly eyeing opportunities in Indonesia, drawn by its expanding economy and significant untapped potential in the clean energy space. For many Finnish players, the country is emerging as a key market of strategic importance.
The MoU provides the basis for cooperation in areas such as smart and flexible energy systems, various renewable energy sources, energy efficiency, waste-to-energy technologies, energy storage, carbon capture, electric vehicle charging infrastructure, nuclear energy, and emerging solutions like hydrogen. Furthermore, it seeks to identify practical measures through which Finland can assist Indonesia in advancing its energy transition goals and achieving carbon neutrality by 2060 or earlier.
In September 2025, the World Bank approved $500 million financing for the Indonesia Electricity Network Transformation (I-ENET) programme to modernise the electricity distribution system in the Java, Madura, and Bali regions. Implemented under PLN’s National Electricity Business Plan (RUPTL) from 2025 to 2032, the I-ENET programme has also secured $491 million in counterpart funding from PLN, and an estimated $342 million in private investment.
