now loading...
Wealth Asia Connect Treasury & Capital Markets Europe ESG Forum TechTalk
Green Finance / Treasury & Capital Markets
ADB lends US$500 million for Indonesian green energy
Loan supports reforms to boost sustainability, governance, private investment, recovery
The Asset 24 Nov 2022

The Asian Development Bank (ADB) has approved a US$500 million loan to support Indonesia’s energy sector reforms aimed at boosting fiscal sustainability and governance, expanding private sector investments in clean and renewable energy, and promoting green recovery from the Covid-19 pandemic.

ADB will also administer a US$15 million loan for the third sub-programme of the Sustainable and Inclusive Energy Programme funded by the Association of Southeast Asian Nations (Asean) Infrastructure Fund through its Asean Catalytic Green Finance Facility.

In addition, the project will include an equivalent of US$292 million in co-financing from the German Development Cooperation, through KfW, and US$60 million from the Economic Development Cooperation Fund.

The subprogramme includes electricity tariff reforms and better targeting of subsidies, with support for the most vulnerable populations, including households headed by women. These actions have led to significantly reduced fuel and electricity subsidies through the programme period, helping the government manage the sharp increase in international energy prices in 2022.

As well, the sub-programme supports the government’s initiatives for promoting renewable energy production with a new pricing mechanism, regulations to promote floating solar, solar rooftop photovoltaic systems, electric vehicles, and energy efficiency standards and measures.

The programme also supports the government’s commitment for developing strategies for the early phase out of coal-fired power plants in the country and clean energy transition, which will be the focus of the bank’s support to the Indonesian energy sector going forward.

Conversation
Justin Ong
Justin Ong
Asia Pacific asset wealth management leader
PWC
- JOINED THE EVENT -
In-person roundtable
Asia and the future of funds
View Highlights
Conversation
Mathew Kathayanat
Mathew Kathayanat
head of product, Asia Pacific securities services
Deutsche Bank
- JOINED THE EVENT -
Webinar
Unlocking the value of automation and AI in asset management
View Highlights

Advertisement