The World Bank has approved the Indonesia Electricity Network Transformation (I-ENET) Program, a US$500 million initiative aimed at modernizing the electricity distribution system in the Java, Madura, and Bali regions. The program will support Indonesia’s energy sector development by expanding renewable energy integration and accelerating the digital transformation of the electricity grid, aligning with the country’s broader goal of achieving net-zero emissions by 2060.
Indonesia’s rapid economic growth over the past two decades has been fueled by widespread electrification and fossil fuel use. As electricity demand is expected to rise sharply, the I-ENET Program seeks to create a more reliable, sustainable, and resilient electricity system capable of supporting future economic and environmental objectives. PT PLN (Persero), the state-owned electricity company, will implement the program as part of its National Electricity Business Plan (RUPTL).
The program will run from 2025 to 2032, combining US$500 million in World Bank financing with US$491 million in counterpart funding from PLN and an estimated US$342 million in private capital, primarily through investments in rooftop solar systems and electric vehicle-charging infrastructure. It is expected to deliver improved electricity services to around 20 million people and integrate 300 megawatts of customer-owned rooftop solar capacity into the grid.
The I-ENET Program will benefit from the World Bank’s step-up loan product, which offers lower interest rates during implementation and potential cost reductions if the project is refinanced post-completion. This initiative complements broader World Bank support for Indonesia’s energy transition, including renewable energy generation, grid modernization, last-mile electrification, and policy reforms.
As part of the World Bank’s Multiphase Programmatic Approach (MPA), a $2.5 billion initiative in East Asia and the Pacific, the I-ENET Program aims to accelerate renewable energy scale-up and grid integration. The initiative also contributes to local job creation and strengthens energy infrastructure resilience, helping Indonesia meet its economic, environmental, and social development goals.
