The Asian Development Bank (ADB) has approved a $500-m policy-based loan to fund the Affordable and Sustainable Energy Transition Program that will help Indonesia in its transition to clean energy.
In a statement, ADB said the programme will support various policy measures for the country to achieve its enhanced nationally determined contribution (NDC) and net-zero power emission targets by 2050. It will also focus on establishing a framework for the energy transition.
“A key measure is the development of a Comprehensive Investment and Policy Plan (CIPP), supported by the Indonesia Just Energy Transition Partnership, which identified the investment requirements and opportunities to deliver on the just energy transition,” ADB said.
“Other key measures include regulatory improvements for scaling up renewable energy capacity, as well as initiatives to strengthen the capacity and governance of energy state-owned enterprises in areas such as the promotion of gender equality,” it added.
The programme is a joint effort by ADB and cofinancing partners, Agence Française de Développement and German Development Cooperation through KfW, to support the government’s leadership in energy transition.
