JAKARTA, SEPT 20 – The Asian Development Bank (ADB) approved a US$500 million loan to help Indonesia accelerate its energy transition.
The Affordable and Sustainable Energy Transition Program will support the implementation of various policy measures to help the country achieve an enhanced national contribution as well as the goal of net zero emissions by 2050.
ADB Director for Indonesia, Jiro Tominaga in a statement said Indonesia is now at a critical juncture in its energy transition efforts.
He said that the loan program is designed to support collaborative policy development, address complex challenges in the sector and facilitate the transition to sustainable and clean energy use.
Although the rapid development in electricity generation capacity has succeeded in reducing many of the energy shortage problems, the country’s energy system is still dependent on fossil fuels such as coal, gas and diesel, according to the ADB.
The program aims to create a strong policy and regulatory framework for the transition to clean energy, strengthen sector governance, ensure financial sustainability and ensure a fair and inclusive transition.
This collaboration involves ADB and co-financing partners, Agence Francaise de Developpement and German Development Cooperation through KfW, to support Indonesia’s energy transition. – Named
