Sustainable and Inclusive Energy Program (Subprogram 2) Project Dates: January 2021 - February 2024
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PROJECT OBJECTIVE

The program identified the priority areas that aimed to: (i) improve sector governance, streamline public sector investments, and expand private sector investment in energy and power markets; (ii) bolster the security and sustainability of the energy sector through increased reliance on domestic gas, renewable energy, and energy efficiency measures; and (iii) provide access to modern energy to all Indonesians.

PROJECT DESCRIPTION

The Government of Indonesia needed to revive a national economy that had experienced strong 6.0%–6.4% growth during 2010–2012 but hovered at about 5% during 2014–2016; the government set an ambitious target to raise its annual economic growth rate to 8% by 2019. Achievement of this target depended mostly on the government’s ability to revive an underperforming energy sector characterized by heavy dependence on coal, widespread government subsidies for fuels and electricity, lagging deployment of renewable energy (despite an abundance of renewable energy resources), and a low electrification rate in many small power markets and remote areas. The government recognized the crucial role of the energy sector in the realization of the country’s economic growth aspirations and made the sector a key part of its National Medium-Term Development Plan, 2015–2019. The government initiated a series of sector reforms in 2013–2014, 1 which became the foundation of the programmatic approach of the Sustainable and Inclusive Energy Program (SIEP). 


SECTORS OR AREAS OF WORK
  1. Energy efficiency

Region/Location

BUDGET

USD 6,060,000

DONORS (OR FUNDING /CONTRIBUTING ORGANIZATIONS)
  1. ADB - Asian Development Bank
IMPLEMENTING AGENCY OR AGENCIES

SUPPORT TYPE
BUDGET

USD 6,060,000

DONORS (OR FUNDING /CONTRIBUTING ORGANIZATIONS)
  1. ADB - Asian Development Bank
IMPLEMENTING AGENCY OR AGENCIES

SUPPORT TYPE