The World Bank said on June 27 it had approved a $1.14 billion project to expand access to cleaner electricity in Indonesia, for which it will provide $500 million in financial support.
The electricity project will connect about 2 million people to the electrical grid in eastern Indonesia, increase solar power investment and help Indonesia's state utility Perusahaan Listrik Negara (PLN) improve its capacity to manage energy transition, according to a statement from the World Bank.
The project will be co-funded by the World Bank, the private sector and PLN and includes funding from Canada Clean Energy and Forest Climate Facility and the Clean Technology Fund.
"It will mobilize private sector finance for Indonesia's energy transition and help communities adapt to climate change," World Bank Vice President for East Asia and the Pacific, Manuela V. Ferro said.
Indonesia, which uses coal for most of its electricity, plans to reduce emissions by 32% by 2030 and reach net-zero emissions by 2060.
Indonesia’s Coordinating Minister for Maritime and Investment Affairs Luhut Pandjaitan said earlier this month that the country could reach net-zero emissions by 2055, five years ahead of the government’s goal of 2060, if it receives financial and technical support.
