The World Bank has approved a $500 million program aimed at transforming Indonesia’s electricity distribution system in the Java, Madura, and Bali regions. The Indonesia Electricity Network Transformation (I-ENET) Program seeks to modernize the grid, expand integration of renewable energy, and accelerate digital transformation within the country’s electricity infrastructure.
Indonesia’s economic growth over the last twenty years has relied on widespread electrification and fossil fuel usage. With ambitions to achieve high-income status by 2060 and net zero emissions by the same year, Indonesia faces increasing electricity demand that will require more sustainable and resilient 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.”
Implementation of I-ENET is scheduled between 2025 and 2032 as part of PLN’s National Electricity Business Plan (RUPTL). The financing structure includes $500 million from the World Bank, $491 million in counterpart funding from PLN, and an anticipated $342 million from private investments. These private funds are expected primarily through investments in customer-owned rooftop solar installations 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 initiative will utilize the World Bank’s step-up loan product that provides lower interest rates during implementation with potential reductions if refinanced after completion. This marks only the second use of this loan type in Indonesia following a similar project approved in June 2025.
Broader support from the World Bank for Indonesia’s energy transition includes investments across renewable generation, grid modernization efforts, last-mile electrification initiatives, and related policy reforms. The I-ENET Program forms part of a larger Multiphase Programmatic Approach (MPA), representing a $2.5 billion effort focused on scaling up renewable energy integration across East Asia and Pacific countries.
According to World Bank assessments, sectors like energy and infrastructure can generate large-scale local employment opportunities. Additionally, these sectors may offer greater resilience against global economic changes compared to others.