This paper documents lessons learned during the implementation of two loans: the Renewable Energy Development Sector Project, and the Power Transmission Improvement Sector Project.

Electrification in Indonesia is disproportionately oriented towards industrial centers on the islands of Java and Bali, leaving thousands of outer islands – particularly in Eastern Indonesia – with low electricity access and an enduring reliance on fossil fuels. To reach more customers and facilitate rural electrification in the early 2000s, the Indonesian government began promoting renewable energy generation and power transmission improvements, with a greater role for the private sector.