Investing in renewable energy generation and power transmission in eastern Indonesia

This paper documents lessons learned during the implementation of two loans: (i) the Renewable Energy Development Sector Project , and (ii) the Power Transmission Improvement Sector Project . These loans were implemented by the Asian Development Bank (ADB) starting in 2002 to develop stronger and more sustainable power supplies in Indonesia, with a particular focus on outer islands in eastern Indonesia, and to encourage greater incorporation of renewable energy into Indonesia’s national power supply. These loans were designed and implemented to address challenges facing electrification efforts in Indonesia. Electrification in Indonesia is disproportionately oriented towards industrial centers on the islands of Java and Bali, leaving thousands of outer islands – particularly in Eastern Indonesia – with low electricity access and an enduring reliance on fossil fuels.