Customize Consent Preferences

We use cookies to help you navigate efficiently and perform certain functions. You will find detailed information about all cookies under each consent category below.

The cookies that are categorized as "Necessary" are stored on your browser as they are essential for enabling the basic functionalities of the site. ... 

Always Active

Necessary cookies are required to enable the basic features of this site, such as providing secure log-in or adjusting your consent preferences. These cookies do not store any personally identifiable data.

No cookies to display.

Functional cookies help perform certain functionalities like sharing the content of the website on social media platforms, collecting feedback, and other third-party features.

No cookies to display.

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics such as the number of visitors, bounce rate, traffic source, etc.

No cookies to display.

Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.

No cookies to display.

Advertisement cookies are used to provide visitors with customized advertisements based on the pages you visited previously and to analyze the effectiveness of the ad campaigns.

No cookies to display.

ADB Approves $500 Million Loan to Support Indonesia’s Energy Transition

Credit: Teguh Setiawan/Pexels

The (ADB) has approved a $500 million policy-based loan to aid in accelerating its energy transition. The Affordable and Sustainable Energy Transition Program is designed to help the country achieve its enhanced nationally determined contribution (NDC) and its target of net-zero power emissions by 2050. This loan is part of the first of two subprograms.

“Indonesia is at a critical juncture in its energy transition journey,” said ADB Country Director for Indonesia, Jiro Tominaga. He added that the loan program would support policy development aimed at addressing the sector's challenges and advancing the transition to clean energy.

Despite significant progress in expanding its electricity generation capacity, Indonesia remains heavily dependent on fossil fuels such as coal, gas, and diesel. The ADB program aims to address this by establishing a strong policy and regulatory framework for clean energy, enhancing sector governance and financial sustainability, and ensuring a just and inclusive transition.

One of the key measures under the program is the development of a Comprehensive Investment and Policy Plan (CIPP), which outlines the investment needs and opportunities for a just energy transition. Other measures include regulatory improvements to boost capacity and initiatives to strengthen energy state-owned enterprises, particularly in promoting gender equality.

The program is a collaborative effort between ADB and cofinancing partners, including Agence Française de Développement (AFD) and German Development Cooperation through KfW. These efforts are part of broader support from ADB, which includes technical assistance projects and financing.

Founded in 1966, ADB aims to foster prosperity, inclusivity, and sustainability across and the Pacific, with a focus on eradicating extreme poverty. The bank is owned by 68 members, 49 of which are from the region.

Add a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Keep Up to Date with the Most Important News

By pressing the Subscribe button, you confirm that you have read and are agreeing to our Privacy Policy and Terms of Use