The Asian Development Bank’s (ADB) Board of Directors approved two loans totaling $1.1 billion to strengthen and diversify Indonesia’s energy sector, the bank announced at the end of last week.
According to the announcement, the first is a $500 million policy-based loan including $100 million from the ASEAN Infrastructure Fund for the Sustainable and Inclusive Energy Program.
'The second is a $600 million results-based loan to the State Electricity Corporation (PLN), guaranteed by the Republic of Indonesia, which will boost access to sustainable and modern energy services in eastern Indonesia,' the statement read.
Winfried Wicklein, ADB country director in Indonesia said in the statement that the two loans approved recently will improve the policy environment to increase public and private investment in Indonesia’s energy sector, and support and develop the power distribution network in Eastern Indonesia.
By Gulsen Cagatay