On 11 June 2024, Climate Policy Initiative (CPI) Indonesia facilitated the Sustainability Banking Hub educational site visit to the Cirata Floating Solar Power Plant (PLTS Cirata) in Purwakarta, West Java.
The visit brought together approximately 30 participants, including CPI's own team alongside representatives from eleven major financial institutions, Bank Mandiri, BNI, BRI, BTN, BSI, BCA, CIMB Niaga, OCBC, HSBC, BTPN, and UOB. The site visit was designed to give financial sector participants direct exposure to the technical, commercial, and technological dimensions of large-scale renewable energy projects; an increasingly important area given Indonesia's regulatory push for sustainable finance, including OJK Regulation No. 51/2017 and the Indonesian Sustainable Finance Taxonomy (TKBI), which together encourage financial institutions to actively participate in the country's energy transition financing.
A smiling woman and man jointly hold a wooden plaque in front of a screen displaying a floating solar farm.
Key Insights from PLTS Cirata
The Cirata Floating PV project has a capacity of 145 MWac / 192 MWp, making it the largest floating solar installation in ASEAN. Located on the Cirata Reservoir in West Java, the plant covers approximately 250 hectares — equivalent to 5% of the reservoir's total area — and was constructed between Q2 2021 and Q3 2023 at an overall project cost of USD 145 million.
The project was funded through a combination of sponsor equity and a consortium of international commercial banks, specifically Standard Chartered Bank (UAE Branch), Sumitomo Mitsui Banking Corporation (Singapore Branch), and Societe Generale (Singapore Branch). This structure offered visiting bankers a real-world model of how project finance can be applied to large-scale renewable energy infrastructure.
The team from Cirata Floating PV project highlighted six compelling advantages of floating PV technology: easier space acquisition, conservation of productive land for other uses, reduced reservoir evaporation, strong synergy with existing hydroelectric infrastructure, higher energy output per installed capacity, and Indonesia's vast untapped potential given its reservoir network. Indonesia holds more than 192 dams and reservoirs covering 86,247 hectares, representing a floating solar potential exceeding 17,200 MWp if up to 20% of the water catchment area is utilized. Cirata was selected as the site for Indonesia's first large-scale floating PV project for several reasons: it is located on Java Island, which has a robust grid capable of handling large-scale solar intermittency; peak electricity consumption in West Java aligns well with solar generation hours; and Cirata holds the largest hydroelectric installed capacity in Indonesia and ranks among the top three largest reservoir areas in the country.
The PV modules used at Cirata were specially designed for the demanding floating solar environment, featuring 21% efficiency, double-glass construction for strength and rigidity, POA encapsulation for high humidity durability, N-Type cells to reduce PID effect, and a 30-year power warranty from the manufacturer — with 340,000 modules installed in total. The floating system itself is made from HDPE — a highly recyclable, environmentally safe, UV- and fire-resistant material with a designed service life of 25 years. The completed facility consists of 13 floating islands, each measuring around 10 hectares with a capacity of 15.7 MWp, anchored by 2,200 mooring systems to a lakebed reaching depths of up to 100 meters, and is expected to produce 250–300 GWh of electricity per year while avoiding up to 214,000 tonnes of CO₂ annually.
Looking Ahead
The Cirata Floating PV project stands as a powerful proof of concept, not just for floating solar technology, but for the broader role that Indonesia's financial sector can play in accelerating the country's clean energy transition. With 87% of Indonesia's current energy mix still derived from fossil fuels, and a national commitment to achieving net-zero emissions by 2060, at the time of writing, the urgency of scaling up renewable energy deployment cannot be overstated.
For the banking participants of the Sustainable Banking Hub, the visit offered more than a technical tour, it provided tangible insight into how renewable energy projects are structured, financed, and operated at scale. From understanding the roles of sponsors, lenders, and offtakers, to appreciating the engineering challenges of anchoring 340,000 solar panels to a reservoir floor, participants left with a far more grounded understanding of what sustainable finance looks like in practice. As regulatory frameworks like OJK 51/2017 and the TKBI continue to mature, and as projects like Cirata demonstrate the commercial and technical viability of large-scale renewables, Indonesia's financial institutions are increasingly well-positioned — and well-informed — to channel capital toward a cleaner, more resilient energy future.
Events
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On 12 June 2024, Climate Policy Initiative (CPI) Indonesia facilitated the Sustainability Banking Hub (SBH) workshop on Sustainable Linked Loans and Sustainable Project Finance in conjunction with ERM Indonesia.
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