ASIATODAY.ID, JAKARTA – Germany has prepared financial support of 262.82 billion euros to support sustainable development in Indonesia, including improving the quality of public transportation and developing a sustainable financial market ecosystem.
Germany will contribute 250 million euros as a subsidized loan and an additional 5 million euros as a grant to support the development of an environmentally friendly Bus Rapid Transit (BRT) system in Surabaya. This is the written statement from the German Embassy quoted on Friday, January 12 2024) in Jakarta.
This project aims to reduce traffic congestion, increase the use of public transportation, and reduce greenhouse gas emissions caused by private vehicles.
German development bank KfW will provide financing and technical expertise throughout the project.
Apart from that, this project will also contribute to the Green Infrastructure Initiative (GII), a bilateral cooperation program between the Governments of Indonesia and Germany which aims to support Indonesia’s efforts to reduce greenhouse gas emissions in a sustainable manner, one of which is in the urban public transport sector.
Germany will also allocate a grant of 7.28 million euros to facilitate the growth of the green bond market in Indonesia. Apart from increasing issuance volume, the grant will also help green bond issuers to improve the quality of the bonds they issue.
The grant will also be used to increase the capacity of issuers and the Indonesian Government.
The project seeks to mobilize additional funding for Indonesia’s ambitious climate agenda, including the energy transition through the Just Energy Transition Partnership (JETP) financing mechanism between Indonesia, Germany and other members of the International Partners Group (IPG), according to the statement.
Indonesia-Germany development cooperation began in 1958, and since then the two countries have worked together to realize Indonesia’s sustainable development in various fields.
Currently, cooperation between Indonesia and Germany focuses on energy and sustainable urban development including public transportation and forest management and conservation.
“This collaboration reflects a shared commitment to a more sustainable future,” the statement said. (AT Network)
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