MANILA (Xinhua): The Asian Development Bank (ADB) on Friday said it has approved a policy-based loan of US$500 million to accelerate Indonesia's transition towards sustainable and clean energy.
The Affordable and Sustainable Energy Transition Program will support various policy measures for the country to achieve its enhanced nationally determined contribution and net-zero power emission targets by 2050, of which this is the first of two subprograms, the ADB said.
The rapid expansion of electricity generation capacity has helped Indonesia overcome much of its power supply constraints, but it has left the system heavily reliant on fossil-fuel-based power sources like coal, gas, and diesel, the Manila-based bank noted.
The program focuses on establishing a robust policy and regulatory framework for clean energy transition, strengthening sector governance and financial sustainability, and ensuring a just and inclusive transition, the ADB said. - Xinhua
