The Asian Development Bank (ADB) has authorised a USD600 million loan to assist Perusahaan Listrik Negara (PLN), a state-owned power utility, in improving the stability and reliability of electricity supply as well as promote the use of sustainable energy in Java’s western and central areas. The Government of Indonesia will provide a sovereign guarantee for the loan.
The loan will be extended under ADB’s Sustainable and Reliable Energy Access Program which targets to renovate, enhance, and extend PLN’s power network. The program targets five provinces in Java including Central Java, Jakarta Special Capital Region, West Java, Banten and Yogyakarta Special Region and is expected to benefit around 112 million people.
The loan will be used to finance PLN’s transmission line improvement, power grid automation, and hazardous waste storage projects. It will also finance the digitalisation and automation of business operations, including the e-procurement, as well as the construction of new electric vehicle (EV) charging stations in Indonesia.
In addition, the Government of South Korea’s e-Asia and Knowledge Partnership Fund has extended a USD500,000 technical grant for the program. The assistance will fund PLN’s technical training in new technologies, such as power grid system planning and automation, EV charging services, and utility-scale energy storage systems (ESS).
