Resource-rich Indonesia, which is aiming for net-zero carbon emissions by 2060, has been trying to reduce the use of coal in its energy sector with the financial support from the G7’s Just Energy Transition Partnership (JETP), but disbursement of funds has been slow.

Highlighting Indonesia’s reliance on coal, the ADB said in a statement the programme “focuses on establishing a robust policy and regulatory framework for clean energy transition, strengthening sector governance and financial sustainability”.

“Indonesia is at a critical juncture in its energy transition journey,” said Jiro Tominaga, ADB’s country director for Indonesia, adding the loan supported Jakarta’s efforts “to accelerate its shift towards sustainable and clean energy”.

The programme includes developing a JETP-supported investment and policy plan, and improvements for scaling up renewable energy capacity, ADB said.

ADB’s co-financing partners for the programme include France’s development agency, Agence Française de Développement (AFD), and German state lender KfW.