The World Bank has approved a $500 million program to support Indonesia's efforts to modernize its electricity distribution system in Java, Madura, and Bali. The Indonesia Electricity Network Transformation (I-ENET) program aims to expand the integration of renewable energy and accelerate the digital transformation of the country's power grid.
Indonesia's economic growth over the past two decades has been supported by widespread electrification and increased use of fossil fuels. As the country works toward becoming a high-income nation by 2045, electricity demand is expected to rise significantly. Achieving net-zero emissions by 2060 will require a more reliable, sustainable, and resilient power system.
“To meet the growing demand for electricity from renewable energy sources, PLN’s reliable power grid needs to be further strengthened and modernized,” said Darmawan Prasodjo, President Director of PT PLN (Persero). “This partnership program will improve our distribution network while supporting Indonesia’s goal of achieving net-zero emissions by 2060.”
The I-ENET program is part of PLN’s Electricity Supply Business Plan (RUPTL) and will run from 2025 through 2032. It includes $500 million in financing from the World Bank, $491 million in partner funding from PLN, and an estimated $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 provide new or improved electricity services to about 20 million people and integrate customer-owned rooftop solar generation with a total capacity of 300 megawatts into the grid,” said Carolyn Turk, World Bank Country Director for Indonesia and Timor-Leste. “Reliable and sustainable access to electricity is key to enabling clean water, health services, and job creation—especially for communities that have not yet received adequate service.”
The program will benefit from a step-up loan provided by the World Bank. This financial product offers lower interest rates during implementation as well as opportunities to reduce borrowing costs if projects are refinanced after completion. This marks only the second time such an innovative product has been used in Indonesia; it follows approval of the Indonesia Sustainable Least Cost Electrification-2 (ISLE-2) project in June 2025.
The World Bank continues broad support for Indonesia’s energy transition—including investments in renewable generation, grid modernization, extending access to underserved communities, and policy reform. The I-ENET initiative is also part of the bank’s Multiphase Programmatic Approach (MPA), a $2.5 billion effort aimed at accelerating expansion and integration of renewable-powered grids across participating East Asia Pacific countries.
Energy and infrastructure are among five sectors identified by the World Bank as capable of generating large-scale local employment opportunities. These sectors may also prove more resilient than others amid ongoing shifts in global economic conditions.