Accelerating Indonesia's Clean Energy Transition
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Publication Type:
Publisher:
Asian Development Bank (ADB)
Publication:
December 2025
This brochure explores how an ADB-supported program is mobilizing large-scale finance for grid-ready renewable energy and a just, affordable energy transition in Indonesia.
Indonesia’s rapid economic growth is driving electricity demand, which is increasing by 4%–5% annually. Renewable energy development is not keeping pace, and the power grid requires significant upgrade to integrate variable renewable energy.
On 18 November 2025, the Asian Development Bank approved Phase 1 of the Accelerating Indonesia’s Clean Energy Transition Program, a landmark, multi-phase, results-based lending program that will guide Indonesia’s shift to renewable energy over the next 10–15 years. Phase 1 provides $1.6 billion to develop solar and wind power projects, strengthen power grid infrastructure, and enhance institutional capacity.
The ASEAN Catalytic Green Finance Facility supports Phase 1 through $30 million in cofinancing from the ASEAN Infrastructure Fund, the European Union, and the United Kingdom, complemented by anticipated parallel financing from Agence Française de Développement and KfW. Technical assistance funded by the Green Climate Fund and the United Kingdom supports environmental safeguards, gender inclusion, and implementation capacity, while Phase 1 is expected to avoid 2.5 million tCO₂e annually and catalyze more than $1 billion in private investment.
