It has been revealed that 15 projects have been approved for pre-feasibility studies within the framework of the German-Indonesian Green Infrastructure Initiative (GII). The initiative was launched in 2019 under the framework of the Indonesian-German Bilateral Government Negotiation, and consists of a five-year Financial Cooperation facility of up to EUR 2.5 billion (to support environment and/or climate-relevant infrastructure projects. It is funded via subsidies and promotional loans through the German Development Bank (KfW).
Approved projects include the Integrated Citarum Wastewater Management project in West Java worth EUR 264 million (USD 291 million), the Low Carbon Tourism Destination Development for the areas of Nusa Penida, Nusa Lembongan and Ceningan in Bali worth EUR 185 million (USD 204), and the Surabaya-Bangkalan Autonomous Railrapid Transit in Central Java worth EUR 216 million (USD 238), among others.
In addition, it has been confirmed that the Indonesian Coordinating Minister of Maritime Affairs and Investment and the German Minister of Economic Cooperation and Development 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.
Significant interest has been 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 in August 2021. Participants covered a wide range of service providers and providers of technical solutions focusing on green-themed projects, from small-and-medium-sized suppliers of materials to large construction companies.
(Source: AHK Indonesien)