ADB to double commitment to Indonesia with an emphasis on a green recovery, specifically geothermal
ADB has pledged to double its financial commitment to Indonesia from today between $1-2 billion/ year with an emphasis on a green economic recovery, mentioning specifically geothermal as a key option for the country.
During a webinar held this week by PT Geo Dipa Energi and infrastructure financing guarantee agency PT Penjaminan Infrastruktur Indonesia (PII), ADB country director Winfried F. Wicklein said the bank will be stepping up its support of Indonesia.
Current annual commitment by ADB to Indonesia, mostly in infrastructure projects, run at $1 billion to $2 billion. With the pledge to double loan commitments, ADB hopes to help facilitate Indonesia’s economic recovery.
But as the Jakarta Post reports, Wicklein calls on the government to invest in renewable energy as part of the country’s economic recovery plans. ADB in this regard is particularly supportive of geothermal power, which ADB considers ideal to spur even growth across the archipelago.
We reported in May 2020 on $300 million in loan funding for PT Geo Dipa for the projects of Dieng and Patuha, with the loan package now signed this week.
“Geothermal will not only help build back greener but it also comes with a very high job multiplier compared to conventional sources of energy,” said Wicklein.
Source: Jakarta Post