The loan to the Tangguh Liquified Natural Gas Project in Irian Jaya will help in the building and operation of gas production wells, platforms and a liquefied natural gas (LNG) facility, the ADB said in a statement.

The facility will export gas initially to China, South Korea and the West Coast of North America, it said.

"The project encourages clean energy use around the region. At the same time, it will increase revenue flows to the national, provincial and local governments," to help social development, said ADB director-general for private sector projects, Robert Bestani.

"Since this is ADB's first private sector project in Indonesia's oil and gas sector, it has the potential to spur subsequent projects not only in Indonesia but also in the region," the bank said.