Over 200 individual, institutional and company representatives from Indonesia and Europe participated in the Info-session on Green Infrastructure Initiative held by EKONID and KADIN recently, which signals significant interest in future green themed infrastructure projects in Indonesia.
On August 13, 2021, EKONID, in coordination with KADIN (the Indonesian Chamber of Commerce and Industry), held an info session to introduce the Green Infrastructure Initiative 鈥� 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.
The initiative, which was launched under the framework of the Indonesian-German Bilateral Government Negotiation on October 1, 2019, in Berlin, is funded via subsidies and promotional loans through the German Development Bank (KfW). The Indonesian Coordinating Ministry for Maritime Affairs and Investments (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.
Over 200 individual, institutional and company representatives from Indonesia and Europe participated in the info-session. 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.
As mentioned by Mr. Arsjad Rasjid, the Chairman of KADIN, in his opening speech to the info session, the enthusiasm was understandable as Indonesians were keenly aware of the environmental impact its rapid economic development had had on the country鈥檚 ecosystem, as well as the country's overall contribution to global greenhouse gas emissions. The initiative was thus an excellent opportunity for Indonesians to contribute more towards combating climate change.
In his follow up opening speech, Mr. Jan R枚nnfeld, Managing Director of EKONID, noted that the initiative was also an opportunity for Indonesian and European companies to collaborate and pass on the ever-important technical know-how in order for the Indonesia to grow its economy sustainably.
Mochamed Saleh Nugrahadi, Coordinating Deputy for Maritime Resources at KemenkoMaves, in representing the Indonesian government, expressed his gratitude to all stakeholders for their enthusiasm in solving Indonesia鈥檚 environmental issues. Meanwhile, Mr. Oliver Hoppe from the German Embassy in Indonesia, in representing the German government, said the initiative was a testament of Germany鈥檚 commitment in being a partner to Indonesia in the fight against climate change.
Eligible projects
It is relevant to note that the Green Infrastructure Initiative mainly targets three sectors, namely Solid Waste Management, Water and Wastewater Management, and Urban Public Transport. Already the German Corporation for International Cooperation GmbH (骋别蝉别濒濒蝉肠丑补蹿迟&苍产蝉辫;蹿眉谤&苍产蝉辫;滨苍迟别谤苍补迟颈辞苍补濒别&苍产蝉辫;窜耻蝉补尘尘别苍补谤产别颈迟 (GIZ) GmbHor GIZ) is holding a separate tender for six pre-feasibility studies that would be used as references for the upcoming feasibility studies from KfW, with the first batch expected to be tendered at the end of this year or early next year. You can find a link to the ongoing GIZ tender
As mentioned by Mr. Burkhard Hinz, Director of Mobility and Urban Infrastructure for East and Asia Pacific at the KfW, the value of the project should be at least 10 million Euro before it could be considered eligible for the financing under this initiative.
A good example of such projects was the expansion of the suburban railway in Surabaya, Indonesia鈥檚 second largest city, of which 230 million euro has been earmarked. The planned 120 kilometers of rail network were intended to connect as many as 500,000 people to sustainable local public transport and at the same time save up to 100,000 tons of CO2 per year.
To achieve such scale, companies were advised to establish consortiums, said Mr. Stephan Blocks, Market Research and Development Advisor at EKONID. In this regard, EKONID can assist European companies to search for potential partners in Indonesia.
For more information, head to the our green infrastructure page