WB approves $2.1 bln investment to support Indonesia’s growth

The World Bank has announced a $2.1 billion financing package for Indonesia, backing two key projects that aim to help the country achieve its goal of becoming a high-income nation by 2045.

In a statement released on June 16, the WB said the financing package is designed to support job creation, stimulate economic growth, and enhance access to clean energy across the country.

The instruments are expected to mobilize a further $345 million in private investment for solar and wind energy projects.

The first component of the package is a $1.5 billion policy loan that will support reforms aimed at expanding the use of digital financial services, removing barriers in credit infrastructure, developing capital markets, and enhancing climate and disaster risk resilience.

The program will also target renewable energy procurement by easing local content requirements. In addition, it will align Indonesia’s industrial zone policies with international environmental and climate standards.

According to the WB’s website, the Office of the Coordinating Minister for Economic Affairs will oversee the implementation of the program. The Indonesian government is expected to request disbursement by December 2026.

The second package, worth $628 million, will support the second phase of the Indonesia Sustainable Least-cost Electrification (ISLE-2) program, led by the state electricity company PLN, with disbursement planned for April 2032.