| Project Detail |
The programs programmatic approach supports the Government of Indonesias energy sector reform priorities and represents a sustained partnership between ADB, the government, and other development partners. Subprogram 3 supports the transformation of Indonesias energy sector through reforms initiated in 2014, which aim to (i) improve fiscal sustainability and governance, (ii) expand private investment, and (iii) promote the deployment of clean and efficient energy options. Subprogram 3 supports the governments ambitious energy sector reforms under the National Medium-Term Development Plan (RPJMN) 20202024 and its greenhouse gas (GHG) emission reductions of 29% under its nationally determined contribution.
Project Name Sustainable and Inclusive Energy Program (Subprogram 3)
Project Number 49043-003
Country / Economy Indonesia
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 4256-INO: Sustainable and Inclusive Energy Program (Subprogram 3)
Ordinary capital resources US$ 500.00 million
Loan 8429-INO: Sustainable and Inclusive Energy Program (Subprogram 3)
ASEAN Infrastructure Fund US$ 15.00 million
Loan: Sustainable and Inclusive Energy Program (Subprogram 3)
Export-Import Bank of Korea US$ 60.00 million
KfW Bankengruppe US$ 292.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector
Energy / Energy sector development and institutional reform
Gender Equity and Mainstreaming Effective gender mainstreaming
Description The programs programmatic approach supports the Government of Indonesias energy sector reform priorities and represents a sustained partnership between ADB, the government, and other development partners. Subprogram 3 supports the transformation of Indonesias energy sector through reforms initiated in 2014, which aim to (i) improve fiscal sustainability and governance, (ii) expand private investment, and (iii) promote the deployment of clean and efficient energy options. Subprogram 3 supports the governments ambitious energy sector reforms under the National Medium-Term Development Plan (RPJMN) 20202024 and its greenhouse gas (GHG) emission reductions of 29% under its nationally determined contribution.
Project Rationale and Linkage to Country/Regional Strategy Subprogram 3 supports the governments energy sector targets stipulated in the National Energy Policy, the successive RPJMNs for 20152019 and 20202024, and the National Energy Plan. The governments general objective is to strengthen economic development and boost economic growth via clean, reliable, and affordable energy supplies. Electricity access for residential and industrial users is important in improving the overall quality of life while enabling a more inclusive business environment. The key targets are to (i) increase the renewable energy supply to 23.0% of the energy mix by 2025; (ii) achieve 100% electrification; reduce electricity network losses to 8.6%; and increase power generation by 22.9 gigawatts, transmission by 97,000 circuit kilometers, distribution by 250,000 circuit kilometers, oil production to 1 billion barrels per day, and domestic natural gas usage to 68% of production; and (iii) reform energy sector governance.
Impact
Clean and affordable energy is realized with the development of energy infrastructure and sustainable electricity. (National Medium-Term Development Plan, 2020-2024) |
