Results-Based Loan Sustainable and Reliable Energy Access Program Western and Central Java (RBL SREAP)

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The aim of the project is to achieve a sustainable and broad-based improvement in access to a reliable, modern electricity supply for the population and companies in the five target regions in West and Central Java. The project sponsor is the state-owned energy company PT PLN. The island of Java dominates Indonesia's economy, contributing 59% to national GDP in 2020. With 111 million people, Java is home to around 41% of Indonesia's 270 million inhabitants and 34% (8.6 million) of the country's poor with an income of less than one US dollar a day. 47% of all Indonesian micro and small businesses are located in the program area. There is widespread access to electricity, but frequent interruptions and power losses limit the security of supply. In order to achieve sustainable and inclusive economic growth, Java will need 259 TW of electricity by 2030, or 66.4% of Indonesia's forecast demand. In order to meet this demand and achieve the Indonesian government's ambitious goals for the expansion of renewable energies, Java's power grid must be strengthened. This project is intended to remedy this. The target group are private households and companies, especially MSMEs, in the project area. The project is structured as a results-based approach (Results-Based Loan) and is being implemented in close cooperation with the Asian Development Bank (ADB), which acts as the lead financier of the overall program. The implementation structure of the program is geared towards achieving concrete results, which are the basis for the disbursement of funds. The achievement of goals is reviewed annually by an independent consultant. Indicators are used to measure goal achievement and the corresponding disbursement, e.g. the annual reduction in power outages and their duration, as well as the increase in procedures within PLNs that comply with international environmental and social standards.