The World Bank has approved a total of USD2.13 billion in blended financing for Indonesia to support its push toward a low-carbon, climate-resilient economy. The financing package combines loans and guarantees aimed at accelerating clean energy adoption, reducing carbon emissions, and enhancing infrastructure development. It includes funding for transmission infrastructure, renewable energy expansion, disaster preparedness, and improved access to healthcare and basic services.
The package aligns with the Government of Indonesia’s Just Energy Transition Partnership (JETP) and its broader commitment to achieve net-zero emissions (NZE) by 2060. Among the programs supported are initiatives to modernise the electricity grid, phase out coal power, and expand the use of solar, geothermal, and hydroelectric power. The financing is expected to catalyse private sector investment while improving resilience to climate shocks, particularly in vulnerable rural and coastal areas.
This is one of the largest climate-focused development packages for Indonesia in recent years, reinforcing the country’s strategic importance in Southeast Asia’s energy transition.
