JAKARTA, INDONESIA (19 November 2025) — The Asian Development Bank (ADB) has approved a 470ドル million results-based loan to PT Perusahaan Listrik Negara (PLN), Indonesia's state electricity corporation, to accelerate the country's transition to renewable energy and advance its goals for sustainable and low-carbon economic growth.

The Accelerating Indonesia's Clean Energy Transition Program—Phase 1 will facilitate the development of solar photovoltaic and wind power projects, strengthen power grid infrastructure across Java-Madura-Bali, Sumatra, and Sulawesi, and enhance PLN's institutional capacity to manage the energy transition. The program is expected to avoid up to 2.5 million metric tons of CO2 emissions annually while contributing to the ASEAN Power Grid vision by developing a robust power grid that effectively integrates renewable energy at scale and serves as the foundational national power infrastructure for ASEAN countries.

"This program marks a pivotal step in Indonesia's journey toward a cleaner, more sustainable energy future," said ADB Deputy Country Director for Indonesia Renadi Budiman. "By supporting PLN’s renewable energy targets and strengthening the grid infrastructure, we are helping Indonesia lay the foundation for long-term energy security and regional connectivity."

The program aligns with Indonesia's development objective to reach high-income status by 2045 through economic, social, and governance transformation. It is a key part of ADB's Country Partnership Strategy for Indonesia, 2025–2029, which prioritizes clean energy transition to enhance resilience and sustainability.

The program will be implemented between 2026 and 2031. It comprises 470ドル million in financing from ADB’s ordinary capital resources and 30ドル 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. In addition, the program includes a 3ドル million grant from the Global Energy Alliance for People and Planet (GEAPP) Energy Access and Transition Trust Fund. The program is expected to mobilize over 1ドル billion in private investment to cover 1,800 megawatts of utility-scale solar and wind power projects.

Indonesia aims to generate 41% of its electricity from renewable sources by 2040, up from 15% in 2024. The program directly supports Indonesia's Electricity Supply Business Plan 2025–2034, which targets adding 69.5 gigawatts of new generation capacity—76% of which will come from renewables.

The program also promotes gender equality by supporting PLN to recruit more women in roles and departments relevant to renewable energy development. It aims to build PLN’s energy transition workforce through learning programs, internships, and formal education. Implementation will be guided by environmental and social safeguards, supported by spatial screening tools and climate vulnerability assessments.

ADB is a leading multilateral development bank supporting inclusive, resilient, and sustainable growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. Founded in 1966, ADB is owned by 69 members—50 from the region.

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