Nov. 17, 2022
Sumitomo Corporation

Conclusion of Principles Agreement on Energy Transition in Indonesia

Sumitomo Corporation (Head Office: Chiyoda-ku, Tokyo; President and CEO: Masayuki Hyodo) has signed a Principles Agreement (hereinafter, the "PA") with P.T. Perusahaan Listrik Negara (Persero) (hereinafter, the "PLN"), an Indonesian state-owned power company to accelerate energy transition in Indonesia.

The purpose of the PA is to accelerate the energy transition in Indonesia by developing new renewable energy power generation projects, along with the consideration of early transfer and retirement of existing coal-fired power plants. This is a new form of next generation cooperation that will co-create a comprehensive ecosystem, attracting investment in green industries that require renewable energy.

Indonesia has declared its commitment to Net Zero Emission by 2060. Until now, coal-fired power using competitive domestic coal has been the mainstay of its electricity supply, and its current dependence on coal-fired power is among the highest in Southeast Asia. Indonesia's electricity demand is expected to increase to about seven times its current level by 2060, and there is an urgent need to gradually increase renewable energy power sources while replacing fossil fuel and other power sources. 

Since the 1970s, Sumitomo Corporation has been involved in power supply development projects at the request of host countries with the cooperation of the Japanese government, to contribute to the industrial development of each country. At the same time, Sumitomo Corporation has been focusing on renewable energy from an early stage and has been involved in more than 100 projects worldwide till today. Based on the experience and achievements accumulated over more than half a century, Sumitomo Corporation aims to further expand its renewable energy power generation business on a global scale. By 2035, Sumitomo Corporation aims to increase its share of renewable energy power generation business to 30% from 20 percent in 2020 on an equity power generation capacity basis. In order to realize a sustainable society, Sumitomo Corporation will continue to study the development of new projects while giving due consideration to the local ecosystem and local communities and will simultaneously contribute to the social and economic development of Indonesia as well as the country's goal of energy transition and Net Zero Emission.

Sumitomo Corporation’s Material Issues

Sumitomo Corporation Group positions “Six Material Issues to Achieve Sustainable Growth with Society” as an important factor in developing business strategies and in the decision-making process for individual businesses. Going forward, we will pursue sustainable growth by resolving these issues through our business activities. This project especially contributes to the following material Issues.

Achieving Harmony with the Global EnvironmentAchieving Harmony with the Global Environment
Contributing to the Development of Local Communities and IndustriesContributing to the Development of Local Communities and Industries
Establishing a Foundation for Comfortable and Enriching LifestylesEstablishing a Foundation for Comfortable and Enriching Lifestyles
Providing Diverse “Accessibility”Providing Diverse “Accessibility”

Developing Human Resources and Promoting DiversityDeveloping Human Resources and Promoting Diversity
Enhancing GovernanceEnhancing Governance

Corporate Communications Department, Sumitomo Corporation
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