ADB Offers $5b in Loans for Indonesia's Energy Development
BY :TABITA DIELA
OCTOBER 08, 2015
Jakarta. The Asian Development Bank has pledged $5 billion in loans to support the power and energy sector in Indonesia over the next four to five years.
The Manila-based lender aims to help state electricity firm Perusahaan Listrik Negara (PLN) improve electricity transmission systems and support clean energy initiatives in the eastern parts of the country, said Steven Tabor, the ADB's Indonesia resident mission country director.
"It seem to be a large amount coming from ADB, but it's actually small for Indonesia's need," he said.
Indonesia seeks to add 35,000 megawatts of power capacity by 2019 and this is estimated to require a total investment of Rp 1,130 trillion ($82 billion), which amounts to about half of the country's budget for 2015.
Tabor made the comments after signing an agreement with the Energy and Mineral Resources Ministry to establish a clean-energy think tank.
The ADB last month said it had prepared a results-based loan scheme for PLN in which funds would be disbursed in stages and in line with progress made on the project to ensure steady development.