ADB : RI'S ENERGY EFFICIENCY PROGRAM NEEDS $4 BILLION

Jakarta, Nov 26 (ANTARA) - Indonesia is projected to require an investment of up to US$4 billion to finance its energy efficiency program, an Asian Development Bank (ADB) official said.

The investment need means an opportunity for domestic and foreign financial institutions, Director of the ADB Water and Energy Division Anthony Jude said on here Thursday.

"The energy sector, including energy efficiency in Indonesia is an opportunity and needs to be developed," he said.

He said return on the US$4 billion investment may be obtained among others from energy retrenchment projects at commercial buildings and industrial facilities.

The energy retrenchment projects may include modification of electricity system, repair of air conditioners and installation of lighting system, he said.

He said the ADB has calculated that a US$420,000 project funded by a commercial bank to repair the air conditioner, pump and lighting systems of an office complex may save electrical power worth US$100,000 per year.

"According to the calculation, return on initial investment may be obtained in four years' time," he said.

The Manila-based bank will continue to increase its investment in the environment-friendly energy sector, he said.

In 2008, the ADB's investment in clean energy reached US$1.7 billion, well above its target of US$1 billion, he said.

The ADB Board of Directors has agreed to double the target to US$2 billion as from 2013, he said.

Last year, the ADB approved loans worth US$10.5 billion, grants worth US$811.4 million and technical aid worth US$274.5 million. ***2***
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