Thursday, 10 April 2025
Home Topics Business ADB approves $500 million loan for Indonesia’s energy transition efforts
BusinessCarbon ManagementClimateCoalEconomyEmissionsFinanceNews

ADB approves $500 million loan for Indonesia’s energy transition efforts

101

JAKARTA — The Asian Development Bank (ADB) said on Friday it has approved a $500 million policy-based loan to Indonesia to fund a program designed to help its energy transition efforts.

Resource-rich Indonesia, which is aiming for net-zero carbon emissions by 2060, has been trying to reduce the use of coal with financial support from the G7’s Just Energy Transition Partnership (JETP).

Highlighting Indonesia’s reliance on coal, the ADB said in a statement the program “focuses on establishing a robust policy and regulatory framework for clean energy transition, strengthening sector governance and financial sustainability”.

Topics

“Indonesia is at a critical juncture in its energy transition journey,” said Jiro Tominaga, ADB’s country director for Indonesia, adding the loan supported Jakarta’s efforts “to accelerate its shift towards sustainable and clean energy”.

The ADB said the loan is intended to support “the sector’s policy development rather than one specific scope or project.”

The program includes developing a JETP-supported investment and policy plan, and improvements for scaling up renewable energy capacity, said ADB, whose co-financing partners for the program include France’s development agency, Agence Française de Développement (AFD), and German state lender KfW.

Funds worth $20 billion have been pledged under a JETP plan for Indonesia to cap emissions in the power sector at 290 metric tons of carbon in 2030, but disbursement of funds has been slow.

Asked about JETP’s slow implementation, Britain’s development minister Anneliese Dodds told Reuters this week that JETP is a long-term partnership that requires big changes around infrastructure.

“This is not going to happen overnight,” she said. “The UK is really working to renew that approach so that together we can be focused on green growth and economic development.”

Dodds added Indonesia has an opportunity to be a carbon sink for the region and that Britain intends to work with other JETP partners to accelerate efforts such as poverty alleviation and deforestation.

(Additional reporting by Stefanno Sulaiman; Editing by John Mair and Kim Coghill)

Related Articles

Lilium burnt through huge sums while trying to develop its jet (AFP)

German flying taxi start-up’s rescue deal collapses

A German flying taxi start-up said on Friday it would halt operations...

FILE PHOTO: U.S. Secretary of the Interior Doug Burgum speaks as he attends a signing ceremony with members of the West Virginia Congressional Delegation at the EPA headquarters in Washington, D.C., U.S., February 18, 2025. REUTERS/Kent Nishimura/File Photo

US energy council chief says power plants to produce 15% more electricity

By Valerie Volcovici WASHINGTON (Reuters) – U.S. Interior Secretary and co-chair of...

Cuba has inaugurated a new solar energy park in the capital Havana (AFP)

Cuba opens solar park hoping to stave off blackouts

Cuba on Friday unveiled a new solar energy park in the capital...

FILE PHOTO: Cranes unload imported iron ore from a cargo vessel at a port in Lianyungang, Jiangsu province, China October 27, 2019. REUTERS/Stringer/File Photo

Iron ore heads for weekly gain on brightening demand outlook, China stimulus hopes

By Amy Lv and Lewis Jackson BEIJING (Reuters) -Iron ore futures prices...

Login into your Account

Please login to like, dislike or bookmark this article.