The Asian Development Bank (ADB) has approved a $500 million policy loan to help Indonesia’s energy transition. The Affordable and Sustainable Energy Transition Program will assist various policy measures for the country to meet its enhanced nationally determined contribution (NDC) and net-zero power emission targets by 2050, marking the first of two subprograms.
The program aims to establish a robust policy and regulatory framework for the clean energy transition, improve governance and financial sustainability, and ensure inclusivity. A key measure is the Comprehensive Investment and Policy Plan (CIPP), backed by the Indonesia Just Energy Transition Partnership, which outlines investment needs and opportunities.
It also includes regulatory improvements to increase renewable energy capacity and initiatives to strengthen the governance of state-owned energy enterprises, including promoting gender equality. The program is a joint effort by ADB and cofinancing partners, Agence Française de Développement (AFD) and German Development Cooperation through KfW.
In July 2024, the ADB sanctioned a $240.5 million loan to finance rooftop solar systems in India. The funding was distributed to the State Bank of India (SBI) and the National Bank for Agriculture and Rural Development (NABARD) to provide loans to developers and end-users for deploying these solar systems across the country.
