ADB provides more than US$1bn in sustainable financing to Indonesia
(25 September 2017 – Indonesia) The Asian Development Bank (ADB) has extended US$1.1 billion worth of loans to sustainable energy sector development in Indonesia.
The total package is comprised of two loans - a US$500 million loan for sustainable and inclusive energy projects, and a US$600 million results-based loan which will allow PLN, Indonesia’s state electricity utility, to provide sustainable energy in the country’s east. The latter is state-guaranteed.
The bank’s Indonesia country director, Winfried Wicklein said, “Increased access to affordable and sustainable sources of energy is a prerequisite for the government to meet its economic growth aspirations. The two loans approved today will, respectively, improve the enabling policy environment to increase public and private investment in Indonesia’s energy sector, and support and develop the power distribution network in Eastern Indonesia.”
Despite the investment from ADB, Indonesia requires much more funding to develop its energy infrastructure due in part to difficult terrain, and it geographical footprint. A World Bank study found the country needs US$500 billion investment in its infrastructure, with a large portion dedicated to power generation.
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