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View all search resultsWorld bank approves $2b financing for RI development
The instruments would allow the World Bank and its partners to mobilize an additional $345 million of private investment to finance solar and wind projects.
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A stage director looks on at the IMF/World Bank Annual Fall Meetings Plenary Session in Washington, DC, on October 18, 2019. (AFP/Andrew Caballero-Reynolds)
T
he World Bank has announced a US$2.1 billion blended finance package spanning over two different projects, which it said were the first approved in support of the Indonesian Government’s goal of reaching high-income status by 2045.
The bank wrote in a statement on Monday, the packages were intended to create jobs, boost economic growth and improve clean energy access across Indonesia. The instruments would allow the World Bank and its partners to mobilize an additional $345 million of private investment to finance solar and wind projects.
“The reforms and investments we are supporting with this blended finance package of over $2 billion will help implement key government priorities and advance the Bank’s own goals to create jobs and advance energy access in one of the largest and most dynamic economies," said World Bank East Asia and the Pacific vice president Manuela V. Ferro in the statement.
The first package was a $1.5 billion loan for policy reform intended to expand the use of digital financial services, removing credit infrastructure constraints and expanding capital markets, alongside “adjusting to climate and natural disaster risks”, reads the statement.
The first package aims to remove obstacles in renewable energy technologies procurement by reducing local content requirements. The program also sought Indonesia to align its industrial estates policies with international good practice standards on environment and climate.
The Office of Coordinating Economic Minister will be the one responsible for implementing the financing, according to the World Bank’s separate webpage. The government likely will apply for disbursement by the end of December 2026.
Read also: Govt plans to raise poverty line despite risky optics
