ADB commits $500m to accelerate Indonesia’s clean energy transition

This supports its geothermal expansion.

The Asian Development Bank (ADB) has approved a $500m policy-based loan to support Indonesia’s energy transition under its Affordable and Sustainable Energy Transition Program.

The funding will support regulatory reforms, governance improvements in the energy sector, and the development of a long-term clean energy investment plan aligned with Indonesia’s Just Energy Transition Partnership (JETP).

In addition, ADB is providing a $92.6m loan to PT Supreme Energy Muara Laboh to expand geothermal power capacity, directly contributing to baseload clean energy generation.

The bank also recently approved $180m in additional financing for PT Geo Dipa Energy to build two 55-MW geothermal plants in Java, which ADB estimates will cut more than 550,000 tonnes of CO₂ emissions per year once operational.