JAKARTA, Sept 20 (Bernama) -- The Asian Development Bank (ADB) has approved a US$500 million policy-based loan to help Indonesia accelerate its energy transition.
The Affordable and Sustainable Energy Transition Programme will support various policy measures to help the country achieve its enhanced nationally determined contribution and net-zero power emission targets by 2050. This programme is the first of two subprogrammes.
The bank’s country director for Indonesia, Jiro Tominaga, in a statement stated: “Indonesia is at a critical juncture in its energy transition journey.”
He noted that the policy-based loan programme is designed to support the country's collaborative policy development, addressing the complex challenges in the sector to facilitate a shift towards sustainable and clean energy.
According to ADB, while the rapid expansion of electricity generation capacity has alleviated many power supply constraints, it has also left the system heavily dependent on fossil fuels, including coal, gas, and diesel.
The programme aims to establish a robust policy and regulatory framework for clean energy transition, strengthen sector governance and financial sustainability, and ensure a just and inclusive transition.
It is a collaborative effort between ADB and cofinancing partners, Agence Française de Développement and German Development Cooperation through KfW, to support the government’s leadership in its energy transition.
-- BERNAMA
