Marubeni Corporation (hereinafter, “Marubeni”) is pleased to announce that a Memorandum of Understanding (hereinafter, “MOU”) has been signed by PT. Cirebon Electric Power (hereinafter, “CEP”), the company operating the Cirebon 1 Coal-Fired Power Plant in the Republic of Indonesia (hereinafter, “Indonesia”) in which Marubeni has a 32.5% investment share, the Asian Development Bank (hereinafter, “ADB”), the Indonesia Investment Authority (hereinafter, “INA”), and PT. PLN (Persero) (hereinafter, “PLN”), on mutual cooperation towards the reduction of the operational term of the Cirebon 1 Coal-Fired Power Plant through the application of an Energy Transition Mechanism (ETM) led by ADB.

On November 14, 2022, the signing ceremony of the MOU took place in a side event at the G20 summit currently being held in Bali, Indonesia, and was attended by President of ADB Mr. Masatsugu Asakawa, CEO of INA Mr. Ridha D. M. Wirakusumah, President Director of PLN Mr. Darmawan Prasodjo, and President Director of CEP Mr. Hisahiro Takeuchi. The parties confirmed to proceed with discussions aiming to reduce the project term of the Cirebon 1 Coal-Fired Power Plant and greenhouse gas emissions from the plant through the utilization of an ETM.

This ETM is an innovative finance approach led by ADB to support the transition from coal-fired generation to clean energy, and the Japanese government has announced the provision of a grant for this purpose. In the case where the four parties come to an agreement on certain conditions, such as the financing terms and conditions and measures to mitigate the potential impact due to the early retirement of the plant (such as the arrangement of an alternative power source), the Cirebon 1 Coal-Fired Power Plant is expected to be the pilot project to aim for the early retirement of the coal-fired power plant by applying this ETM.

The Indonesian Government set the goal of achieving net zero greenhouse gas emission by 2060, underpinned by its target to reduce emissions by 31.89% by 2030.

Marubeni has established the Marubeni Long-Term Vision on Climate Change as of March 2021, and has also highlighted green strategy as one of its main policies to increase corporate value in its Mid-Term Management Strategy (“GC 2024”). Through the promotion of decarbonization of its existing coal-fired power plants, Marubeni will drive the decarbonization process of its corporate group forward and enhance its green strategy, and is committed to promoting decarbonization in Indonesia.

Overview of ADB:
Name:	Asian Development Bank
Location:	Manila, Republic of the Philippines
Representative:	Masatsugu Asakawa (President)
Establishment:	1966
Business:	Finance
Website:	https://www.adb.org/
Overview of INA
Name:	Indonesia Investment Authority
Location:	Jakarta, Republic of Indonesia
Representative:	Ridha D. M. Wirakusumah (CEO)
Establishment:	2021
Business:	Finance
Website:	https://www.ina.go.id/en
Overview of PLN:
Name:	PT. PLN (Persero)
Location:	Jakarta, Republic of Indonesia
Representative:	Darmawan Prasodjo (President Director)
Establishment:	1945
Business:	Power Generation, Transmission, and Distribution
Website:	https://web.pln.co.id/
Overview of CEP:
Name:	PT. Cirebon Electric Power
Location:	Jakarta, Republic of Indonesia
Representative:	Hisahiro Takeuchi (President Director)
Establishment:	2007
Business:	Power Generation
Website:	https://www.cirebonpower.co.id/
Overview of Cirebon 1 Coal-Fired Power Plant:
Site:	Cirebon, West Java, Republic of Indonesia   *approximately 250 km to the east of Jakarta
Generating Capacity:	660 MW (net)
Commercial Operation Date:	July 2012
Offtaker:	PT. PLN (Persero)
Contract Period:	30 years

Reference:
News Release, March 9, 2021:
The Marubeni Long-Term Vision on Climate Change: Towards Net-Zero GHG Emissions
https://www.marubeni.com/en/news/2021/release/00022.html