“We hope that this is the first good news of many, as we need to mobilize the pledged $21.6 billion as fast as we can in order to accelerate energy transition in Indonesia,” added Kaimuddin.

The JETP Secretariat reports to the National Energy Transition Task Force.

The Norwegian Climate Investment Fund committed $25 million, whereas British International Investment (BII) committed $5 million, to renewable start up Xurya as part of a $55 million funding round which also included Swedfund, Climate Capital as the manager of Southeast Asian Clean Energy Fund (SEACEF) II and AC Ventures.

The equity investment will support the expansion of Xurya’s solar energy capacity, which are mostly rooftop solar projects supplying green energy to commercial and industrial customers.

“Norfund is thrilled to lead this investment round in Xurya, mobilizing private and public capital into a company that is making vital contributions to the energy transition in Indonesia. The investment is a perfect fit with the mandate of the Climate Investment Fund of contributing to avoiding greenhouse gas emissions by investing in renewable energy in emerging markets.”, said Anders Blom, Senior Vice President, Renewable Energy at Norfund.

Srini Nagarajan, Managing Director and Head of Asia at BII, said, “In Indonesia, commercial and industrial solar energy should be an important part in driving the country’s energy transition and economic growth. We are delighted to be supporting Xurya, a pioneer in this field, and strengthen our partnership with Indonesia. As the UK’s development finance institution, this investment reflects our commitment to support JETP and sustainable development and to build a greener, more resilient future.”

The Government of Norway and the United Kingdom are members of the International Partners Group (IPG) in Indonesia’s JETP.

The Norwegian government has pledged up to NOK 2.5 billion (US$ 230 million as per July 2024 exchange rate) in the form of equity investment from the Norwegian Climate Investment Fund.  

The UK has pledged $1.15 billion to JETP, comprising $1 billion Multilateral Bank Guarantee via the World Bank and $150 million of equity investment via their Private Infrastructure Development Group (PIDG). BII’s equity investment to Xurya represents an additional JETP contribution.

“Norway and Indonesia are close partners in the transition to renewable energy, with regular bilateral energy consultations for the past 30 years. This most recent investment is testimony of Norway’s strong commitment to support Indonesia as a member of the JETP,” says Rut Krüger Giverin, Norwegian Ambassador to Indonesia.

“I’m delighted to see BII’s contribution to the first equity investments in Indonesia under the JETP. BII’s investment in Xurya is a significant step and is in addition to the UK’s $1.15 billion commitment. We hope to see more projects like this catalyse renewable energy investment in the private sector," says Dominic Jermey, British Ambassador to Indonesia.

Xurya was established in 2018 and has more than 170 solar power projects distributed across Indonesia. It was the first Indonesian company that offered rooftop solar rental without initial cost, which has helped spur the rapid growth of rooftop solar adoption recently, particularly in the commercial and industrial sector.

Since then, the Xurya team has continued to innovate many firsts in the industry, becoming the first to utilize Internet of Things (IoT) for remote solar operations in Indonesia and embedding machine learning in solar operations.