JakartaPost-Nov 19, 2025
The Asian Development Bank (ADB) has approved a US$470 million results-based loan for state-owned electricity provider PLN to expedite Indonesia’s transition to renewable energy. The funding marks the first phase of the Accelerating Indonesia Clean Energy Transition Program, which will support the development of solar photovoltaic and wind power projects, improve critical electricity grids in the Java-Madura-Bali, Sumatra and Sulawesi systems and enhance PLN’s capacity to manage Indonesia’s energy transition efforts. The program is projected to cut carbon dioxide emissions by up to 2.5 million tons annually. “This program marks a significant step in Indonesia’s journey toward a cleaner and more sustainable energy future,” Renadi Budiman, ADB deputy country director for Indonesia, said in a press release issued on Wednesday. “By supporting PLN’s renewable energy targets and strengthening its grid infrastructure, we are helping Indonesia lay the foundation for long-term energy security and regional connectivity.” The program, scheduled for implementation from 2026 to 2031, comprises $470 million from ADB’s ordinary capital resources and $30 million from ADB-administered funds. In total, the program is expected to mobilize more than $1 billion in private investment to finance utility-scale solar and wind projects with a total capacity of 1,800 megawatts. The government still heavily subsidizes electricity generated from coal, which makes renewable energy less competitive. Read more at: https://www.thejakartapost.com/business/2025/11/19/adb-approves-470m-loan-to-accelerate-ris-clean-energy-shift.html.
