27-6-2023 (JAKARTA) The World Bank has announced the approval of a $1.14 billion project aimed at expanding access to cleaner electricity in eastern Indonesia. This initiative will receive $500 million in financial support from the World Bank, and aims to connect approximately 2 million people to the electrical grid while simultaneously increasing solar power investment.
According to a statement released by the World Bank, the project will also serve to improve the capacity of Indonesia’s state utility Perusahaan Listrik Negara (PLN) to manage energy transition. This will be achieved through co-funding from the private sector, the Clean Technology Fund, and Canada Clean Energy and Forest Climate Facility.
World Bank Vice President for East Asia and the Pacific, Manuela V. Ferro, applauded the project’s commitment to mobilizing private sector finance for Indonesia’s energy transition and helping communities adapt to climate change. In a statement, she said, “This project will mobilise private sector finance for Indonesia’s energy transition and help communities adapt to climate change.”
Indonesia, which currently relies on coal for most of its electricity, has set ambitious targets to reduce emissions by 32% by 2030 and reach net-zero emissions by 2060. The new project is expected to play a critical role in helping Indonesia achieve these goals.
The project’s emphasis on clean energy and sustainability is in line with global efforts to combat climate change and transition to a low-carbon future. With this development, Indonesia is poised to take a significant step towards reducing its carbon footprint and achieving a more sustainable future for its citizens.
