Indonesia Energy Sector DPL

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This program document presents a DPL to support the Government of the Republic of Indonesia’s priorities for developing a sustainable and inclusive energy sector that will further the country’s medium-term economic development and poverty reduction goals. The operation, in the amount of US$ 500 million, is the first in a planned programmatic series of two single-tranche operations supporting critical policy and institutional reforms that have four key development objectives: (a) reducing the fiscal cost of electricity provision; (b) improving the investment climate in the energy sector; (c) removing constraints to renewable energy expansion; and (d) expanding access to modern, reliable energy. The DPL series forms an integral part of the World Bank Group’s (WBG) overall energy strategy in Indonesia, supporting the Government’s sectoral priorities and its Intended Nationally Determined Contribution (INDC) commitments to reduce greenhouse gas (GHG) emissions. The DPL series aims to address key policy and institutional bottlenecks in support of the Government’s objectives for a more sustainable and inclusive energy sector. The DPL series anchors the Bank’s broader energy strategy in Indonesia which aims to expand opportunities for alternatives to coal-fired power generation as quickly as possible and accelerate universal access to reliable, modern energy.