Indonesia : Sustainable and Inclusive Energy Program (Subprogram 3)

Sovereign Project | 49043-003

The program's programmatic approach supports the Government of Indonesia's energy sector reform priorities and represents a sustained partnership between ADB, the government, and other development partners. Subprogram 3 supports the transformation of Indonesia's energy sector through reforms initiated in 2014, which aim to (i) improve fiscal sustainability and governance, (ii) expand private investment, and (iii) promote the deployment of clean and efficient energy options. Subprogram 3 supports the government's ambitious energy sector reforms under the National Medium-Term Development Plan (RPJMN) 20202024 and its greenhouse gas (GHG) emission reductions of 29% under its nationally determined contribution.

Project Details

Project Name
Sustainable and Inclusive Energy Program (Subprogram 3)
Project Number
49043-003
Country / Economy
  • Indonesia
Project Status
Closed
Project Type / Modality of Assistance
  • Loan
Source of Funding / Amount
Loan 4256-INO: Sustainable and Inclusive Energy Program (Subprogram 3)
Source Amount
Ordinary capital resources US$ 500.00 million
Loan 8429-INO: Sustainable and Inclusive Energy Program (Subprogram 3)
Source Amount
ASEAN Infrastructure Fund US$ 15.00 million
Loan: Sustainable and Inclusive Energy Program (Subprogram 3)
Source Amount
KfW Bankengruppe US$ 292.00 million
Export-Import Bank of Korea US$ 60.00 million
Operational Priorities
  • OP2: Accelerating progress in gender equality
  • OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
  • OP4: Making cities more livable
  • OP6: Strengthening governance and institutional capacity
Sector / Subsector
  • Energy / Energy sector development and institutional reform

Gender
Effective gender mainstreaming
Description
The program's programmatic approach supports the Government of Indonesia's energy sector reform priorities and represents a sustained partnership between ADB, the government, and other development partners. Subprogram 3 supports the transformation of Indonesia's energy sector through reforms initiated in 2014, which aim to (i) improve fiscal sustainability and governance, (ii) expand private investment, and (iii) promote the deployment of clean and efficient energy options. Subprogram 3 supports the government's ambitious energy sector reforms under the National Medium-Term Development Plan (RPJMN) 20202024 and its greenhouse gas (GHG) emission reductions of 29% under its nationally determined contribution.
Project Rationale and Linkage to Country/Regional Strategy
Subprogram 3 supports the government's energy sector targets stipulated in the National Energy Policy, the successive RPJMNs for 20152019 and 20202024, and the National Energy Plan. The government's general objective is to strengthen economic development and boost economic growth via clean, reliable, and affordable energy supplies. Electricity access for residential and industrial users is important in improving the overall quality of life while enabling a more inclusive business environment. The key targets are to (i) increase the renewable energy supply to 23.0% of the energy mix by 2025; (ii) achieve 100% electrification; reduce electricity network losses to 8.6%; and increase power generation by 22.9 gigawatts, transmission by 97,000 circuit kilometers, distribution by 250,000 circuit kilometers, oil production to 1 billion barrels per day, and domestic natural gas usage to 68% of production; and (iii) reform energy sector governance.
Impact

Clean and affordable energy is realized with the development of energy infrastructure and sustainable electricity. (National Medium-Term Development Plan, 2020-2024)

Project Outcome

Description of Outcome

Supply from sustainable and more accessible energy options increased (also to support a green recovery from COVID-19)

Progress Toward Outcome

Implementation Progress

Description of Project Outputs

Sector governance improved

Markets for private sector participation enabled

Regulatory environment for increased access to clean energy and energy efficiency improved

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location
Nation-wide

Safeguard Categories

Environment
C
Involuntary Resettlement
C
Indigenous Peoples
C

Summary of Environmental and Social Aspects

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples

Stakeholder Communication, Participation, and Consultation

During Project Design
During Project Implementation

Contact

Responsible ADB Officer
Yuki Inoue
Responsible ADB Department
Sectors Group
Responsible ADB Division
Energy Sector Office (SG-ENE)
Executing Agencies
Ministry of Energy and Mineral Resources

Timetable

Concept Clearance
15 Jul 2021
Fact Finding
03 Mar 2020 to 13 Mar 2020
MRM
07 Oct 2020
Approval
24 Nov 2022
Last Review Mission
-
Last PDS Update
24 Nov 2022

Funding

Loan 4256-INO

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
24 Nov 2022 28 Dec 2022 28 Feb 2023 30 Jun 2023 - 30 Jun 2023
Financing Plan
  Total (Amount in US$ million)
Project Cost 500.00
ADB 500.00
Counterpart 0.00
Cofinancing 0.00
Loan Utilization
  Date ADB Others Net Percentage
Cumulative Contract Awards 29 Jan 2024 500.00 0.00 100%
Cumulative Disbursements 29 Jan 2024 500.00 0.00 100%

Loan 8429-INO

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
24 Nov 2022 28 Dec 2022 28 Feb 2023 30 Jun 2023 - 30 Jun 2023
Financing Plan
  Total (Amount in US$ million)
Project Cost 15.00
ADB 0.00
Counterpart 0.00
Cofinancing 15.00
Loan Utilization
  Date ADB Others Net Percentage
Cumulative Contract Awards 29 Jan 2024 0.00 15.00 100%
Cumulative Disbursements 29 Jan 2024 0.00 15.00 100%

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

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Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.


Evaluation Documents See also: Independent Evaluation

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Related Publications

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Tenders

No tenders for this project were found.

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.