The Asian Development Bank (ADB) has approved a USD500 million loan to support the transition to cleaner energy in Indonesia. This initiative aims to reduce the country’s coal dependency and help it reach net-zero carbon emissions by 2060.
The program will focus on creating a strong policy and regulatory framework, improving sector governance, and ensuring financial sustainability. Co-financing partners include France-based Agence Française de Développement (AFD) and Germany-based KfW. This loan is also tied to Indonesia’s participation in the G7’s Just Energy Transition Partnership (JETP) initiative, which has faced delays in fund disbursement.