As many as 15 projects have been approved for pre-feasibility studies within the framework of the German-Indonesian Green Infrastructure Initiative (GII). The approval of the 15 projects is one of six resolutions passed at the second session of the GII Steering Committee, which was held virtually on February 10, 2022.
Co-led by the Indonesian Coordinating Minister of Maritime Affairs and Investment (Kemenkomaves), Mr. Luhut B. Pandjaitan, and the German Minister of Economic Cooperation and Development (BMZ), Ms. Svenja Schulze, the steering committee brought into the public eye the projects that have been approved pre-feasibility studies. These projects include the Integrated Citarum Wastewater Management project in West Java worth 264 million euros, the Low Carbon Tourism Destination Development for the areas of Nusa Penida, Nusa Lembongan and Ceningan in Bali worth 185 million euros, and the Surabaya-Bangkalan Autonomous Railrapid Transit in Central Java worth 216 million euros, among others.
鈥淕reen Infrastructure Initiative is an innovative way to accelerate and prioritize environment and climate relevant infrastructure projects. It is also a green investment to generate sustainable economic growth to provide a high standard of living to all citizens,鈥� said Mr. Pandjaitan in his opening remarks.
Ms. Schulze, in her opening remarks that followed, said a climate-friendly future can only be achieved with a functioning circular economy and sustainable waste management, as well as climate friendly transport and environmentally sound and resource-friendly wastewater management systems.
鈥淚 am impressed by the many new project proposals which have been presented by the provinces and of which we will jointly decide today. This very good response shows that our initiative is the right approach in order to implement Indonesia鈥檚 national and local priorities in the fight against climate change and environmental degradation,鈥� she said.
Additionally, the steering committee has confirmed the addition of Yogyakarta and East Nusa Tenggara as new partner provinces and is also strongly considering the request for support for the provinces of East Kalimantan and South Kalimantan. Furthermore, the KemenkoMaves and the BMZ will seek to maximize local content and transfer of technology within the context of international procurement guidelines. This will be done by establishing a joint working group for the duration of the initiative that will seek to agree on the ways to implement local content requirements within the framework of bilateral cooperation.
鈥淔inding a timely solution is in the interest of both of our countries so I鈥檓 confident we will find a suitable solution,鈥� said Ms. Schulze.
GII, which was launched under the framework of the Indonesian-German Bilateral Government Negotiation on October 1, 2019, in Berlin, is a five-year Financial Cooperation facility of up to EUR 2.5 billion (Rp 42.36 trillion) to support environment and/or climate-relevant infrastructure projects. It is funded via subsidies and promotional loans through the German Development Bank (KfW). The KemenkoMaves and the Indonesian Committee for the Acceleration of Priority Infrastructure Delivery (KPPIP) are responsible for coordinating and accelerating the planning and the implementation of the projects.
As previously reported by EKONID, there is significant interest shown by local and international companies towards GII projects. Over 200 individual, institutional and company representatives from Indonesia and Europe participated in an Info-session on Green Infrastructure Initiative held by EKONID and The Indonesian Chamber of Commerce (KADIN) in August, 2021. These participants covered a wide-range of service providers and providers of technical solutions eager to work on green-themed projects, from small-and-medium-sized suppliers of materials to large construction companies.