Ecobiz.asia — The Asian Development Bank (ADB) has approved a US$ 470 million results-based loan for state utility PT Perusahaan Listrik Negara (PLN) to speed up Indonesia’s shift to renewable energy and support low-carbon economic growth.
The Accelerating Indonesia’s Clean Energy Transition Program — Phase 1 will support the development of solar and wind projects, strengthen grid infrastructure in Java–Madura–Bali, Sumatra and Sulawesi, and boost PLN’s institutional capacity in managing the energy transition.
ADB said the program is expected to avoid up to 2.5 million tonnes of CO₂ emissions annually and contribute to the ASEAN Power Grid initiative by improving renewable energy integration across the region.
“This program marks a pivotal step in Indonesia’s journey toward a cleaner, more sustainable energy future,” ADB Deputy Country Director for Indonesia Renadi Budiman said in a statement on Wednesday (Nov. 19, 2025). “By supporting PLN’s renewable energy targets and strengthening grid infrastructure, we are helping Indonesia lay the foundation for long-term energy security and regional connectivity.”
The loan forms part of ADB’s Country Partnership Strategy for Indonesia 2025–2029, which prioritizes clean energy transition as the country aims to reach high-income status by 2045.
The program, to be implemented from 2026 to 2031, includes $470 million from ADB’s ordinary capital resources and US$ 30 million from ADB-administered funds, including the ASEAN Infrastructure Fund and contributions from the European Union and the United Kingdom under the ASEAN Catalytic Green Finance Facility.
It also includes a US$ 3 million grant from the Global Energy Alliance for People and Planet (GEAPP). ADB expects the initiative to mobilize more than US$ 1 billion in private investment for 1,800 megawatts of utility-scale solar and wind projects.
Indonesia targets generating 41% of its electricity from renewable sources by 2040, up from 15% in 2024. The program supports the country’s Electricity Supply Business Plan 2025–2034, which aims to add 69.5 gigawatts of new generation capacity, 76% of it from renewable energy.
The program also aims to advance gender equality by supporting PLN to increase the number of women in renewable-energy-related roles and to develop an energy transition workforce through training, internships and education programs.
Environmental and social safeguards will guide implementation, supported by spatial screening tools and climate vulnerability assessments. ***
