Sustainable Energy Access in Eastern Indonesia— Electricity Grid Development Program (Phase 2) – RBL KMP (Kalimantan Maluku Papua)
Indonesia’s economy has doubled since 2000, becoming the world’s eighth largest by purchasing power parity. The poverty rate has significantly decreased from 19.1% in 2000 to 9.7% in 2018, lifting 13.1 million people out of poverty. However, economic growth is mainly concentrated in Java, with significant regional disparities, especially in Eastern Indonesia, where poor infrastructure hampers growth.
The government aims to improve electrification, focusing on regions outside Java. The plan includes increasing the electrification ratio to nearly 100% by 2024, doubling power generation capacity by 2028, and raising the share of renewable energy to 23% by 2025. The Asian Development Bank (ADB) supports these efforts through various programs, including policy support, results-based lending, and sector projects.
The proposed programs target nine provinces in Kalimantan, Maluku, and Papua, which face significant development challenges and poor gender indicators. The goal is to enhance sustainable, equitable, and reliable access to electricity, aligning with Sustainable Development Goal 7 and the Paris Agreement on climate change.