Wahyu Dwi Anggoro
IDXChannel - The World Bank has approved a new program to increase access to sustainable and lower-cost electricity in eastern Indonesia. The program will also strengthen infrastructure resilience and support communities’ ability to adapt to climate change.
The Indonesia Sustainable Least-cost Electrification-1 (ISLE-1) Program will connect 500,000 new customers – around 2 million people – to the electrical grid, scale up solar power investments to reduce greenhouse gas emissions and lower the cost of power generation by 20 percent. It will also enhance the capacity of Indonesia’s electrical power company, PT. PLN Persero, to manage the energy transition.
The program will support Indonesia’s shift to low-emission development through affordable, reliable, and sustainable energy. Indonesia’s energy sector is expected to become the highest contributor to greenhouse gas emissions in the country by 2026. The Government of Indonesia has committed to reducing emissions by close to 32 percent by 2030.
“The ISLE-1 Program will mobilize private sector finance for Indonesia’s energy transition and help communities adapt to climate change. Households in poor communities in Eastern Indonesia islands will have access to more reliable and sustainable electricity and businesses will see less interruption to their production.” said World Bank Vice President for East Asia and the Pacific, Manuela V. Ferro, in a media release on Tuesday (27/6/2023).
“This project is an example of how the World Bank Group is helping countries integrate climate action into their development plans and mobilize private sector finance for development," he added.
