WASHINGTON, DC, September 25, 2025 - The World Bank today approved the Indonesia Electricity Network Transformation (I-ENET) Program, a US$500 million operation to help Indonesia modernize its electricity distribution system in the Java, Madura, and Bali regions. The Program will support Indonesia's energy sector development goals by expanding the integration of renewable energy and accelerating the digital transformation of the electricity grid.
Indonesia's rapid economic development over the past two decades has been underpinned by widespread electrification and the use of fossil fuels to meet growing energy needs. As the country aspires to reach high-income status by 2060, electricity demand is expected to soar. To also meet its goal of achieving net zero-emissions by 2060, it will need to create more reliable sustainable, and resilient electricity systems.
"To meet the growing electricity demand from renewable energy sources, PLN's already reliable electricity network needs to be strengthened and modernized," said Darmawan Prasodjo, CEO at PT PLN (Persero). "This collaborative program will enhance our distribution networks while simultaneously supporting Indonesia's goal to achieve net-zero emissions by 2060."
The program-part of PLN's National Electricity Business Plan (RUPTL)-will be implemented between 2025 and 2032. It includes US$500 million in financing from the World Bank, US$491 million in counterpart financing from PLN, and an expected US$342 million in private capital mobilization, particularly through investments in customer-owned rooftop solar systems and electric vehicle-charging infrastructure.
"The I-ENET Program is expected to deliver new or improved electricity services to approximately 20 million people and integrate 300 megawatts of customer-owned rooftop solar capacity into the grid," said Carolyn Turk, the World Bank's Division Director for Indonesia and Timor-Leste. "Reliable and sustainable electricity access is a key enabler for clean water, health services, and job creation, especially for underserved communities."
The I-ENET Program will benefit from the World Bank's step-up loan product, which offers lower interest rates during implementation and the opportunity to reduce loan costs if a project is refinanced after project completion. It would be the second loan in Indonesia to benefit from this innovative product, following approval of the Indonesia Sustainable Least Cost Electrification-2 Project in June 2025.
The World Bank provides broad support for Indonesia's energy transition, including investments in renewable energy generation, grid modernization, last-mile electrification, and policy reforms. The I-ENET Program is also part of the World Bank's Multiphase Programmatic Approach (MPA), a $2.5 billion initiative to accelerate the scale-up and grid integration of renewable energy in participating countries in East Asia and Pacific.
Energy and infrastructure is one of the five sectors the World Bank has identified that can generate local jobs at scale. The sector may also be more resilient than many others to the broader forces reshaping the global economy.
