Indonesia granted $500m to boost power access

A new programme aimed at helping Indonesia meet its growing power needs has been launched. The World Bank is providing a $500 million (£343.6m) loan to national power utility PT […]

Register now!

By Priyanka Shrestha

A new programme aimed at helping Indonesia meet its growing power needs has been launched.

The World Bank is providing a $500 million (£343.6m) loan to national power utility PT PLN to boost electricity access to 90% in Sumatra Island as well as improve systems to be more efficient and reliable.

Around 39 million Indonesians lack access to electricity and nine million of them live in Sumatra.

The project will support the expansion of the distribution network.

Rodrigo Chaves, World Bank Country Director for Indonesia said: “Lack of electricity access to millions of people in Sumatra constrains the region’s economic potential and the Power Distribution Development Programme will help close the infrastructure gap that prevents Indonesia from achieving higher growth.

“Electrification improves economic productivity as well as health and education outcomes, particularly for the poor and near poor.”