Germany-based development bank KfW has announced plans to invest EUR2.50 billion over five years in infrastructure projects in Indonesia. This investment is a part of a German–Indonesian climate initiative on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ). KfW has committed EUR1.40 billion in climate-related financing in Indonesia since 2011. Funds will be invested in urban mobility, waste management, and wastewater and water supply projects.
Of the EUR2.50 billion, EUR230 million is planned to be invested in expanding the suburban rail network in Surabaya, the second largest city in the country. The rail network will be expanded by 120 km. It is expected to save up to 100,000 tonnes of carbon dioxide per year.