Affordable and Sustainable Energy Transition Program, Subprogram 1

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The Affordable and Sustainable Energy Transition Program will support the Government of Indonesia in achieving its enhanced Nationally Determined Contribution (NDC), 2022 and its power subsector net-zero emission target by 2050 through various policy measures to accelerate energy transition in the country. The program is a milestone intervention in Indonesia's shift of focus from securing energy supply to a transition to clean energy for sustainable growth. It leverages the momentum created by Indonesia's climate and energy transition commitments made in 2022. The program will be designed to align well with the climate focus of Asian Development Bank's (ADB's) country partnership strategy for Indonesia, 2020-2024 and the principles of ADB's Energy Policy. It also seeks to contribute to three operational priorities of ADB's Strategy 2030 : accelerating progress in gender equality, tackling climate change, and strengthening governance and institutional capacity. The program will be a programmatic approach policy-based lending (PBL) with two subprograms. However, the reform actions may require a third subprogram, which will be determined during subprogram 2 preparation. Energy transition requires a multiyear staggering of reform actions and a programmatic approach rather than a single PBL.