Swedfund makes first renewable energy investment in Indonesia
Introduction
Stockholm, 2 July, 2024 – Swedfund, Sweden's development finance institution, has announced an equity investment of USD 10 million in Xurya, an innovative Indonesian solar rooftop company. The investment is part of a USD 55 million financing round led by Norfund and with the participation of Clime Capital, AC Ventures and British International Investment (BII).
The investment will be Swedfund's first equity investment in the renewable energy sector in Indonesia, a country that plays a crucial role in global efforts to mitigate climate change. Indonesia has a large population of 250 million people – the fourth largest in the world – and is a major producer and consumer of energy. Xurya enables commercial and industrial companies across the country to adopt solar power with no upfront costs, displacing fossil fuel-based power generation. This will result in significant CO2 emission reductions, job creation and sustainable economic development.
– This investment in Xurya is an important milestone for Swedfund as we expand our commitment to renewable energy in Southeast Asia. We believe that by supporting pioneering companies like Xurya we can help accelerate the transition to a sustainable energy future, said Maria Håkansson, CEO of Swedfund.
– We are proud to partner with Xurya in our first equity investment in Indonesia's renewable energy sector. With a shared mission to combat climate change in a high emitting country and a focus on measurable impact metrics, we look forward to actively contributing to a sustainable impact for people and the environment alike, said Gunilla Nilsson, Investment Director, Energy & Climate at Swedfund.
As the largest archipelagic nation in the world, Indonesia is among the most vulnerable to the negative impact of climate change. To address this risk, the Indonesian government has produced a roadmap to achieve net zero emissions by the year 2060, which includes increasing the proportion of renewables such as solar power into the national energy mix. Swedfund’s investment supports Indonesia’s transition to a low-carbon economy.
To date, Xurya has developed more than 170 solar projects across Indonesia. Xurya's solar systems have helped to avoid 152,000 tonnes of CO2 emissions per year and created more than 1,600 green jobs. With the capital from this funding round, the company is expected to avoid a further 370,000 tonnes of CO2 per year.
Swedfund, through its active ownership, expects to improve Xurya’s capacity to manage its business's environmental, social and corporate governance aspects, ensuring the company’s growth is sustainable and aligned with best practices.
About PT Xurya Daya Indonesia
PT Xurya Daya Indonesia (Xurya) is a renewable energy company based in Indonesia with a vision to revolutionise the Indonesian energy industry. Xurya pioneered the no-upfront rental method to incentivise commercial and industrial companies to switch to solar energy. Xurya strives to make it easier for companies to use clean and renewable energy by offering complete solutions to its clients starting from funding options, technical design, feasibility studies, installation, operation and maintenance.
Xurya has installed and operated rooftop solar at more than 100 companies from various industrial segments, such as hotels, shopping centers, hospitals, cold storage, logistics, industrial areas, and manufacturing (mineral water, steel, car tires, vegetable seeds, concrete, paint, consumer goods, ceramics, chemicals, food, textiles, etc.). Xurya rooftop solar systems are distributed across Indonesia, from North Sumatra, South Sumatra, Lampung, DKI Jakarta, Banten, West Java, Central Java, East Java, Bali, South Kalimantan and South Sulawesi.