ADB loan to for Indonesia’s energy sector

5 Oct 15

Indonesia is to receive a $500m loan from the Asian Development Bank to help diversify its energy sector and drive growth.

The funds will support ongoing Indonesian reforms aimed at improving governance in the energy sector by lowering subsidies, adopting cost-recovery-based tariffs and boosting the performance of state-owned electrical utilities.

“Indonesia’s energy sector has suffered severe underinvestment due to long-standing subsidies on fuel and electricity,” Pradeep Tharakan, senior energy specialist in ADB’s Southeast Asia regional department.

“This has resulted in poor access to modern forms of energy despite the country’s vast energy resource endowment. The project will help the government to enhance energy security, as well as increase supply from renewable sources and natural gas in the future energy mix.”

The money will also boost efforts to scale up renewable energy and prepare for the adoption of cleaner fossil fuel technologies such as carbon capture and storage.  


  • Judith Ugwumadu
    Judith Ugwumadu

    Judith writes about public finance, public services and economics across Public Finance International and Public Finance. She previously undertook reporting stints at Financial Adviser, Global Security Finance and The Sunday Express.

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