World Bank approves $1.1bn loan for Indonesia as Southeast Asian nations seek to expand their clean energy programs

JAKARTA (Vietnam News/ANN): The World Bank has approved two projects worth $1.1 billion to expand access to cleaner electricity in Indonesia.

The first project, valued at US$500 million, will connect some 2 million Indonesians to the electricity grid in the eastern part of the country, increase investment in solar energy and help the Indonesian electric power company, PT. PLN Persero will improve its ability to manage the energy transition, the World Bank said in a statement.

It will be co-financed by the World Bank, the private sector and PLN and includes funds from the Canada Clean Energy and Forest Climate Facility and the Clean Technology Fund.

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

Indonesia, which uses coal for most of its electricity, aims to reduce emissions by 32% by 2030 and reach net zero emissions by 2060.

The second project recently approved by the World Bank for Indonesia is a $600 million grant to help the country curb the amazing growth of children.

According to a government survey issued in January, about 21% of Indonesian children under the age of five were stunted in 2022, about 4.5 million children.

The Indonesian government aims to reduce the percentage to 14% by 2024. – Vietnam News/ANN