Swedfund makes first renewable energy investment in Indonesia

Stockholm, 2 July 2024 – Swedfund, a Swedish development finance institution, announced a $10 million equity investment in Xurya, an innovative Indonesian solar roofing company. The investment is part of a $55 million financing round led by Norfund with participation from 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 key 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 energy without upfront costs, replacing 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 on our first equity investment in the renewable energy sector in Indonesia. 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 on people and the environment, said Gunilla Nilsson, Chief Investment Officer, Energy & Climate at Swedfund.

As the world’s largest archipelagic nation, Indonesia is one of the most vulnerable to the negative impacts of climate change. To address this risk, the Indonesian government has developed a roadmap to achieve net-zero emissions by 2060, which includes increasing the share of renewable energy sources, such as solar, in the country’s energy mix. Swedfund’s investment supports Indonesia’s transition to a low-carbon economy.

To date, Xurya has developed over 170 solar projects across Indonesia. Xurya’s solar systems have helped avoid 152,000 tons of CO2 emissions per year and created over 1,600 green jobs. With the capital from this round of financing, the company is expected to avoid another 370,000 tons of CO2 per year.

Through active management of the company, Swedfund expects to improve Xurya’s ability to manage environmental, social and governance aspects, ensuring that the company’s growth is sustainable and in line with best practices.

About PT Xurya Daya Indonesia

PT Xurya Daya Indonesia (Xurya) is an Indonesia-based renewable energy company with a vision to revolutionize the Indonesian energy industry. Xurya pioneered the no-upfront rental method to encourage commercial and industrial businesses to switch to solar energy. Xurya aims to make it easier for businesses to use clean and renewable energy by offering its customers a complete solution, from financing options, technical design, feasibility studies, installation, operation and maintenance.

Xurya has installed and serviced rooftop solar systems in more than 100 companies from various industry segments such as hotels, shopping malls, hospitals, cold storage, logistics, industrial areas and manufacturing (mineral water, steel, car tires, vegetable seeds, concrete, paints, consumer goods, ceramics, chemicals, food, textiles, etc.). Xurya rooftop solar systems are distributed throughout Indonesia, from North Sumatra, South Sumatra, Lampung, DKI Jakarta, Banten, West Java, Central Java, East Java, Bali, South Kalimantan and South Sulawesi.