ADB Earmarks US$5 Billion for Indonesia's Clean Energy
8 October 2015 17:46 WIB
TEMPO.CO, Jakarta-The Asian Development Bank (ADB) has allocated an asistance fund of US$5 billion for the development of renewable energy programs in Indonesia.
“The money is huge for us, but it’s too small for Indonesia,” ADB country director for Indonesia Steven Tabor said in Jakarta on Thursday, Oct 8, 2015.
According to Tabor, Indonesia has a huge potential in renewable energy and needs constant innovations to harness the potential.
The ADB has prioritized the fund for a number of projects, including the transmission system and electricity improvement, gas network development in eastern Indonesia, and hydro power plant constructions. Other projects include partnership with the government to reform policies in the renewable energy sector.
Tabor added that the ADB aimed at amending bills on geothermal, solar panel and hydro power plants to stimulate investments.
Energy and Mineral Resources Minister Sudirman Said revealed that Indonesia would need Rp 1,000 trillion (US$71.4 billion) to develop clean energy. Sudirman added that the government had set a target to use 100 percent clean energy within 85 years. Currently, Indonesia’s clean energy utilization in the national energy mix only reach 8.5 percent, which is expected to increase to 25 percent in 2025.
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