Powering Futures, Transforming Jobs in Eastern Indonesia

As evening falls in rural eastern Indonesia, households stay active longer than before. Children finish homework under steady electric lights. Small shops remain open after sunset. Families gather around fans that bring relief from the heat.

For many communities, these moments signal a turning point. What's long been taken for granted elsewhere - reliable electricity -- now anchors daily life.

Daily Life used to Stop at Sunset

Indonesia is on the cusp of achieving universal electricity access, yet pockets of remote villages remain beyond the grid's reach. The push to connect these last-mile regions is transforming what was once a distant hope into an attainable future, mirroring the progress already seen in much of the country.

In the village of Wontong in Flores island in eastern Indonesia, one of these villages once beyond the reach of the grid, reliable electricity is enabling new livelihoods, strengthening services, and improving everyday conditions. Parents describe safer evening study for children. Small business owners speak of longer opening hours and more stable income. Health workers point to consistent refrigeration for medicines and vaccines.

Electricity access affects how time is used, how income is earned, and how services are delivered. It shapes educational outcomes, economic participation, and quality of life-particularly for women and children.

For Hendrikus Marsoni, a kiosk owner in Wontong village, East Nusa Tenggara, access to reliable electricity has opened new opportunities, "With electricity now available, I have expanded my business to include document typing, laminating services and electricity token sales." These services, previously impossible, now contribute to additional income and greater convenience for the community.

Partnership at the Core

With World Bank support, the Indonesia's Sustainable Least-Cost Electrification (ISLE) program, is helping the Government of Indonesia and the state-owned electric utility PLN extend affordable, reliable electricity to regions long hindered by geography and distance. By financing last-mile connections, grid upgrades, and solar deployment, the program is building cleaner, more resilient power systems and prioritizing underserved communities.

ISLE's ambition to connect over 5.5 million people while deploying 1.2 GW of solar and wind to the grid reflects close collaboration between the Government of Indonesia, PLN, and the communities being served. ISLE is supported by the Sustainable Renewables Risk Mitigation Initiative (SRMI) at the World Bank's Energy Sector Management Assistance Program (ESMAP) and a coalition of international partners.

ESMAP's technical assistance and financing have helped strengthen electrification and generation planning, expand access in underserved areas, and ensure that investments remain affordable, reliable, and aligned with Indonesia's long-term energy and climate goals.

The World Bank's commitment to Indonesia's electrification journey is reflected in its use of pioneering financial structures, such as the Step-Up-Loan mechanism and the Framework for Financial Incentives (FFI). By combining these tools in a first-of-its-kind approach, the World Bank underscores the significance of the ISLE program and demonstrates how innovative financing can accelerate access and drive inclusive growth.

In addition to World Bank support, ISLE-1 and ISLE-2 programs are funded through contributions from the Canada Clean Energy and Forest Climate Facility (CCEFCF), the Clean Technology Fund (CTF), the Green Climate Fund (GCF) SRMI-Resilience program, and the United Kingdom's Foreign, Commonwealth & Development Office (FCDO) through ESMAP. Together, these partners support Indonesia's efforts to deliver inclusive, sustainable electricity access while preparing the power system for greater integration of renewable energy.

"Canada and Indonesia are strengthening their partnership across trade, climate, and development," said Maria Ramirez, First Secretary at Embassy of Canada to Indonesia. "Through our support for Indonesia's Sustainable Least-Cost Electrification Program, Canada is helping scale solutions that deliver reliable electricity at lower cost while strengthening climate resilience -- an example of climate finance driving inclusive growth and long-term energy transitions."

Acting as a catalyst, SRMI-ESMAP has helped the government and PLN scale access quickly and cost-effectively, with community engagement embedded throughout. Residents partner with PLN to set priorities, manage connections, and ensure infrastructure serves practical needs -households, small businesses, schools, and health services. "The community response has been very positive," said Faisal, a PLN solar plant operator. "By providing power, the technology is helping improve our local economy."

More to be Done-But the Path Is Clear

Indonesia's vision of universal, sustainable electrification is ambitious. Reaching the most remote communities, ensuring long-term affordability, and integrating higher shares of renewable energy will require continued investment, planning, and institutional capacity.

ISLE shows that blending infrastructure investment with smarter planning, active community engagement, and long-term cost control can meet these challenges. Progress is real, but sustained effort is still needed to reach the last-mile, boost reliability, and cement development gains.

For families now able to rely on electricity each evening, the impact is immediate. For the country, it is one step in a longer transition -- one that will connect more communities, strengthen resilience, and support inclusive growth as Indonesia advances toward universal access.