The Asian Development Bank (ADB) said on November 19 that it has approved a $470 million results-based loan to Indonesia's state-owned utility, PT Perusahaan Listrik Negara (PLN), to support the country's shift to renewable energy and low-carbon growth objectives.

As a central component of ADB's country partnership strategy for Indonesia, the Accelerating Indonesia's Clean Energy Transition Program - Phase 1 will help develop solar and wind power projects, reinforce power grid infrastructure across Java-Madura-Bali, Sumatra, and Sulawesi, and enhance PLN's capacity to manage energy transition.

The program is projected to avoid 2.5 million tonnes of carbon dioxide emissions annually, and advance the ASEAN Power Grid initiative by building a national infrastructure that can integrate large volumes of renewable energy.

Set to be implemented from 2025 to 2029, the program is expected to be financed by $470 million from ADB's ordinary capital resources and supplemented by $30 million from ADB-administered funds.

The additional funds include resources from the ASEAN Infrastructure Fund and contributions from the EU and the UK through the ASEAN Catalytic Green Finance Facility.

The program directly supports Indonesia's Electricity Supply Business Plan 2025-2034, which seeks to add 69.5 GW of new generation capacity, with renewables expected to account for 76% of this growth.