World Bank approves US$1.14 billion clean-energy project in east Indonesia

THE World Bank said on Tuesday (Jun 27) it has approved a US$1.14 billion project to expand access to cleaner electricity in eastern Indonesia, for which it will provide US$500 million in financial support.

The programme will connect about two million people to the electrical grid, increase solar power investment and help Indonesia’s state utility Perusahaan Listrik Negara (PLN) to improve its capacity to manage energy transition, the World Bank said in a statement.

It 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.

The project “will mobilise private sector finance for Indonesia’s energy transition and help communities adapt to climate change,” said World Bank vice-president for East Asia and the Pacific Manuela V Ferro in a statement.

Indonesia, which uses coal for most of its electricity, aims to slash emissions by 32 per cent by 2030 and reach net-zero emissions by 2060.

Separately, the World Bank said it had approved $600 million in financing toward Indonesia’s efforts to curb stunting in children’s growth, a form of malnutrition.

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About 21 per cent – or 4.5 million – of Indonesian children under five years old had stunted growth in 2022, according to a government survey issued in January.

Indonesian President Joko Widodo said the country aims to lower that percentage to 14 per cent in 2024.