Germany has agreed to extend a USD2.9 billion loan to finance green infrastructure projects in Indonesia’s urban areas. The funds will be released over a period of five years along with an Indonesian-German Infrastructure scheme.
The scheme will aim to reduce carbon emissions in Indonesian cities and will be implemented through a partnership between Germany and the German National Bank (KfW) along with cooperation with Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ). GIZ will provide advisory services and identify potential infrastructure projects. KfW will then finance and implement these projects in Indonesia.
The two countries will cooperate to promote public awareness as well enable technology transfer. Indonesia will also aim to provide clean water supply and to make public transportation systems greener.
