World Bank Commits $1.14 Billion to Promote Clean Energy and Improve Child Health in Indonesia

Credit: Teguh Setiawan/Pexels

The has recently granted approval for a substantial $1.14 billion project aimed at expanding access to cleaner electricity in . The project will be supported with $500 million in financial aid from the World Bank, with an additional $600 million allocated for enhancing childhood nutrition.

Through the electricity project, approximately 2 million individuals residing in eastern Indonesia will gain access to the electrical grid. Furthermore, this initiative will facilitate increased investments in solar power while assisting Indonesia's state utility company, Perusahaan Listrik Negara (PLN), in strengthening its energy transition capabilities. The World Bank emphasized that the project will be a collaborative effort, with co- contributions from the private sector, PLN, Canada Clean Energy and Forest Climate Facility, and the Clean Technology Fund.

See also: Indonesia Plans to Raise Palm Oil-Based Biodiesel Blending to 40% as part of Sustainable Energy Drive

In a statement, Manuela V. Ferro, Vice President for East Asia and the Pacific at the World Bank, highlighted the project's significance, stating that it will mobilize private sector financing to support Indonesia's energy transition and help communities adapt to the challenges posed by climate change.

Indonesia, which heavily relies on coal for its electricity generation, has set ambitious targets to reduce emissions by 32% by 2030 and achieve net-zero emissions by 2060.

In a separate development, the World Bank announced its approval of $600 million in financing to aid Indonesia's efforts in addressing stunting, a form of malnutrition affecting children's growth. A government survey released in January revealed that approximately 21% of Indonesian children under the age of five experienced stunted growth in 2022, accounting for approximately 4.5 million children.

See also: Indonesia and Saudi Arabia Discuss Investment Opportunities in Renewable Energy

Indonesian President Joko Widodo has expressed his country's commitment to reducing the stunting rate to 14% by 2024.

The World Bank's financial support for both projects is expected to make a substantial impact on Indonesia's energy sector by promoting the adoption of cleaner electricity sources and ensuring the well-being of the nation's children through improved nutrition.

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