ADB to provide US$1b loan for Indonesia's power upgrade projects

US$600m will be for development in the eastern part.

The Asian Development Bank (ADB) has endorsed two loans with a combined value of US$1.1b for the improvement of Indonesia's energy sector. Enerdata said that the first loan entails US$600m and will focus on the development of the eastern part of the country. It will strengthen the electricity distribution system of eight provinces across Nusa Tenggara and Sulawesi.

Enerdata added that the second loan is policy-based and fits into the framework of the Sustainable and Inclusive Energy Program - Subprogram 2, which aims at helping stimulate Indonesia’s energy sector and supporting the government’s energy sector reform agenda. "The project is supporting the government’s efforts to reduce subsidies, adopt cost-recovery-based tariffs and boost the performance of state-owned energy companies," Enerdata said.

This story was originally published by Enerdata.