Jakarta: Indonesia and Germany have agreed to embark on a strategic partnership in the area of public infrastructure for Urban Water Management, Solid Waste Management und Urban Public Transport.
This collaboration aims to improve the provision of infrastructure and service delivery to the population of various cities and districts in Indonesia in these important domains during the coming years.
At the same time the investments will have a positive impact in relation to environmental challenges and will contribute to the reduction of greenhouse gas emissions.
The German Ministry of Economic Cooperation and Development coordinates the German contribution to the initiative and has commissioned the German Development Bank (KfW) and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH with the implementation.
Germany will provide up to 2.5 billion Euro for subsidized loans via KfW to facilitate the financing of the infrastructure measures, and up to 4.4 million Euros in form of a grant for the technical assistance in developing preparatory studies via GIZ.
"2021 is a transformative year for all of us in terms of climate change. The Green Infrastructure Initiative fits perfectly into our common goal of ‘building back better’ after the pandemic while focussing on a ‘green recovery’. The numbers of 2.5 billion Euros for subsidized loans and 4.4 million Euros in grants for technical assistance are a statement of how sincere Germany is in this regard," said German Ambassador to Indonesia Peter Schoof in a press release on Thursday.
Both sides will verify the progress of the initiative in regular sessions of a joint Steering Committee, which will serve to provide clear orientations and guidance to all involved actors in order to allow for a smooth and productive implementation.
During the first session of the Steering Committee, both sides agreed today that the GIZ will, in the first phase of the initiative, collaborate with the Provincial Governments of West Java, Central Java, East Java and Bali in the identification of potential investment projects and the development of necessary preparatory studies.
The Governors of all four provinces confirmed the readiness for the cooperation and will guarantee the coordination of all related work in the respective territory under their responsibility.