Indonesia gets £600m loan to boost power system

Indonesia has been funded a £600m loan to improve its power system. It will support major power distribution upgrades in Sumatra. These include enhancements to 150kV transmission lines, extensions of substations and […]

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Indonesia has been funded a £600m loan to improve its power system.

It will support major power distribution upgrades in Sumatra. These include enhancements to 150kV transmission lines, extensions of substations and the installation of new and upgraded equipment, including switchgears.

The Asian Development Bank (ADB) has given the money to the country’s state electricity corporation which will carry out the work.

The project aims to help Sumatra achieve an electrification rate of 90% by 2019 and support the overall government target of achieving universal access to electricity by 2024, from the current national rate of around 84%.

Rehan Kausar, Unit Head for Project Administration in ADB’s Southeast Asia Department said: “The power sector has been expanding in Indonesia but it hasn’t kept pace with increased demand.

“System reliability and stability have deteriorated with both Sumatra and Java recently experiencing blackouts.

“This assistance will help it deliver sufficient and reliable electricity supply to Sumatra, improving the quality of life and supporting efforts to make the region a major industrial centre.”

The project is scheduled to take place between December 2015 to December 2019.

ADB recently urged Mongolia to include water resource considerations when planning energy and mining developments.