The Asian Development Bank (ADB) has approved a US$470 million loan to Indonesia’s state electricity corporation, Perusahaan Listrik Negara (PLN), to speed up the country's transition to renewable energy and sustainable growth.

The program, which will be carried out from 2026 to 2031, will finance solar and wind power projects and strengthen power grids across Java-Madura-Bali, Sumatra, and Sulawesi. This is expected to decrease up to 2.5 million metric tons of CO2 emissions per year.

The initiative supports Indonesia's goal to generate 41% of its electricity from renewables by 2040, rising from 15% in 2024. The ADB expects the program to mobilize more than US$1 billion in private investment for new green power projects.