Australia looks to pension funds to fuel Southeast Asia clean energy expansion

Australia is leveraging its pension funds and blended finance to drive clean energy expansion in Southeast Asia, with Indonesia as a key focus through initiatives like the Australia-Indonesia Climate and Infrastructure Partnership (KINETIK). Australia provided a $15 million concessional loan for the Muara Laboh geothermal project’s Unit 2 expansion in West Sumatra, part of a $92.6 million ADB financing package expected to power 435,000 households by 2027. The project emphasizes gender equality, local jobs, and community benefits, supporting Indonesia’s net-zero goals and harnessing its vast geothermal potential while unlocking private capital for low-carbon infrastructure.
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