The Asian Development Bank (ADB) has approved a USD470 million results-based loan for Indonesia’s state utility PLN to advance the first phase of the Accelerating Indonesia’s Clean Energy Transition Program. The initiative focuses on scaling solar and wind capacity, strengthening grid infrastructure across Java–Madura–Bali, Sumatra and Sulawesi, and improving PLN’s institutional capacity to manage a rapidly expanding renewable portfolio. ADB estimates the programme could avoid up to 2.5 million tonnes of CO2 emissions annually and support long-term regional interconnection under the ASEAN Power Grid vision.
The financing package includes USD470 million from ADB’s ordinary capital resources, supplemented by $30 million from ADB-administered funds and a USD3 million GEAPP grant. The programme is expected to catalyse over USD1 billion in private investment to develop around 1,800 MW of utility-scale solar and wind projects between 2026 and 2031. It aligns with Indonesia’s RUPTL 2025–2034, which targets 69.5 GW of new capacity—76 per cent from renewables—and contributes to the national goal of sourcing 41 per cent of electricity from clean energy by 2040.
Beyond infrastructure, the programme supports gender inclusion through recruitment and training pathways for women in technical and operational roles. Environmental and social safeguards, spatial screening and climate-vulnerability assessments will guide implementation. ADB noted the initiative strengthens Indonesia’s long-term energy security and supports the country’s aspirations for sustainable, high-income economic growth by 2045.