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 Officer
    Kitt, Florian
    Southeast Asia Department
    Request for information
  • Approval Date
    24 November 2022
  • Country/Economy
    Indonesia
  • Sector
    • Energy
Project Name Sustainable and Inclusive Energy Program (Subprogram 3)
Project Number 49043-003
Country / Economy Indonesia
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 4256-INO: Sustainable and Inclusive Energy Program (Subprogram 3)
Ordinary capital resources US$ 500.00 million
Loan 8429-INO: Sustainable and Inclusive Energy Program (Subprogram 3)
ASEAN Infrastructure Fund US$ 15.00 million
Loan: Sustainable and Inclusive Energy Program (Subprogram 3)
Economic Development Cooperation Fund US$ 60.00 million
KfW Bankengruppe US$ 292.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

Energy / Energy sector development and institutional reform

Gender Equity and Mainstreaming 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
Responsible ADB Officer Kitt, Florian
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Energy Division, SERD
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

Loan 4256-INO

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 500.00 Cumulative Contract Awards
ADB 500.00 - 0.00 0.00 %
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 - 0.00 0.00 %

Loan 8429-INO

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 15.00 Cumulative Contract Awards
ADB 0.00 - 0.00 0.00 %
Counterpart 0.00 Cumulative Disbursements
Cofinancing 15.00 - 0.00 0.00 %

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Tenders

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Contracts Awarded

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Procurement Plan

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