Sustainable Energy Access in Eastern Indonesia (RBL SNT)
Status
The implementation phase ended on December 31, 2023. The program was highly successful, with a target achievement rate of approximately 98%. The program’s implementation structure, as a RBL, was geared toward achieving concrete results, which guide the disbursement of funds. Target achievement was reviewed annually by an independent consultant. Indicators (Disbursement-Linked Indicators, DLIs), such as the expansion of the distribution network infrastructure and increased access to electricity services, were used to measure target achievement and the corresponding disbursement. The targets have been almost fully met. Accordingly, PT PLN is entitled to receive 98% of the loan amount. The final disbursement was made in October 2024, meaning PLN has received 98% of the loan amount in full.
Overall Project Duration
The implementation phase ended on December 31, 2023. The program was highly successful, with a target achievement rate of approximately 98%. The program’s implementation structure, as a RBL, was geared toward achieving concrete results, which guide the disbursement of funds. Target achievement was reviewed annually by an independent consultant. Indicators (Disbursement-Linked Indicators, DLIs), such as the expansion of the distribution network infrastructure and increased access to electricity services, were used to measure target achievement and the corresponding disbursement. The targets have been almost fully met. Accordingly, PT PLN is entitled to receive 98% of the loan amount. The final disbursement was made in October 2024, meaning PLN has received 98% of the loan amount in full.
Commissioner
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Political Partner
State Electricity Company (PLN)
Cooperation Partners
State Electricity Company (PLN)
Implementing Organization
KFW
Project page on organization website
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Project Documents and Links
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The result-based loan (RBL) program aims to support the development of electricity distribution networks to connect businesses and households and to enhance the quality of life in Eastern Indonesia by the sustainable use of electricity as a key driver of increased economic activity. The program will complement a proposed sector loan for small- to mid-sized natural gas-fired power stations to deliver more sustainable energy services to communities across Eastern Indonesia. Natural gas is a much cleaner fuel compared to diesel and the quick-responding nature of gas-fired engines and turbines make them a good match for intermittent renewable energy sources such as solar and wind. It is an appropriate transition fuel to move towards a low-carbon energy system. The two loans will help enhance access to sustainable energy services and contribute to climate change mitigation.
Background
The program aimed to support the development of electricity distribution networks to connect businesses and households and improve the quality of life in eastern Indonesia through the sustainable use of electricity as a key to increasing economic activity. Indonesia has been on a stable growth trajectory for several years. Java and Bali, in particular, have grown significantly faster than the eastern parts of Indonesia. This is leading to ever-increasing regional income disparities between Java and Bali and the eastern provinces. Eastern Indonesia has enormous potential to develop new sources of sustainable and inclusive economic growth in sectors such as fishing, agro-industry, and tourism. However, this potential cannot be fully realized due to a lack of key infrastructure such as electricity supply, ports, roads, and communications networks. To improve this situation, the government had made accelerating infrastructure investments, including in the remote and eastern parts of the country, one of its main objectives as part of the National Medium-Term Development Plan (RPJMN) 2020-2024, with rural electrification playing a key role. The program built on this goal:
Although nationwide electrification was already at 99% by the end of 2019, electrification rates in eastern Indonesia, i.e., in some areas of Sulawesi, Papua, and North Kalimantan, were 80% or less. A key reason for this was the limited availability and quality of the power grid. The project presented here aims to address this.
Desired Impacts
The project objective is defined as follows: By promoting the expansion of the electricity distribution system, access to a reliable, modern electricity supply for the population and businesses in the target regions of Sulawesi and Nusa Tenggara will be sustainably and broadly improved. The project thus aims to contribute to the overarching development policy goal of sustainable economic and social development in the remote eastern regions of Indonesia.
Project Activity Areas (Outputs)
Informed social dialogue and stakeholder engagement on just energy transition in coal regions takes place in Regional Consultation Forums
Transformational measures to support the JET of coal regions are rolled out
Policy advice to improve the policy framework for just energy transition is fed into respective policy processes.
Project Publications
Tools
SEA Information Platform for the Energy Transition (SIPET)
The Southeast Asia Information Platform for Energy Transition (SIPET) is a one-stop platform for information and knowledge exchange about the energy transition in the region. SIPET aims to be a central launch pad for energy transition stake holders to facilitate dialogue and promote coordination in the Southeast Asia power sector.
Bio DB
BioDB is a useful website for providing general information, encouraging discussion and conversation on the topic of bioenergy from agro-industrial waste. The data and information presented were collected by the Strategic Exploration of Economic Mitigation Potentials through Renewables (ExploRE) project, a project funded by the Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU), Federal Republic of Germany, in collaboration with the Ministry of Energy and Mineral Resources (ESDM) of the Republic of Indonesia, and implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ)
IKI JET
The global energy transition away from coal to renewable energy is threatening local livelihoods, economic activities and jobs, but also holding opportunities for sustainable, low carbon development. The project aims at supporting key stakeholder of coal regions to plan for and implement regional just energy transition pathways away from coal and towards a low-carbon energy system. Focusing on the regional economic transformations, the project works with government, industry, unions, communities, civil society, and academia. It supports interregional peer-to-peer exchange, learning, and policy dialogue in an international network and information sharing via a knowledge hub. In Indonesia, it supports the development of specific transition plans in two coal regions. In Colombia, it supports the development of the concept and framework for energy communities and the implementation of just and inclusive energy communities in César and la Guajira.
CASE for Southeast Asia
The “CASE for Southeast Asia” website is dedicated to the promotion of clean, affordable, and secure energy transitions across Southeast Asia. The website focuses on the provision of resources, the conducting of research, and the facilitation of collaborative projects in countries such as Indonesia, Thailand, the Philippines, and Vietnam, with the aim of supporting energy transition efforts. The platform highlights the challenges and opportunities in the region’s energy sector, while sharing knowledge, best practices, and policy recommendations aimed at advancing the transition to renewable energy and sustainable development
Contact
Project Address
TBD
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Teresa
