Indonesia and Germany strengthen their collaboration in advancing green transportation systems, supporting “The Green Infrastructure Initiative.” The nations, with a 60-year diplomatic relationship, focus on reducing carbon emissions and combating climate change.
Transportation, a significant carbon contributor, is a key focus for Indonesia’s Ministry of Transportation. Initiatives aim to create an eco-friendly transportation system, with Germany’s KFW Development Bank contributing to environmentally sustainable infrastructure development in Indonesian cities.
Projects like the Bus Rapid Transit (BRT) system in Semarang and Surabaya, along with railway developments in Surabaya, exemplify the Indonesia-Germany cooperation.
Minister of Transportation, Budi Karya Sumadi, expresses hopes for more green transportation projects aligning with the 2025-2029 Medium-Term National Development Plan (RPJMN).
Climate bonds initiative reports 13 green infrasructure projects
Indonesia is actively implementing 13 low-carbon or green transportation infrastructure projects, eligible for funding through green bonds, according to the Climate Bonds Initiative. Notable projects include the expansion of Jakarta’s MRT and LRT systems.
Seven out of the 13 projects are concentrated in Jakarta, encompassing developments like LRT Gading-Jakarta International Stadium, MRT Phase 3 Kalideres Ujung Menteng, MRT Phase 4 Fatmawati-TMII, MRT Jakarta North-South Corridor, Jakarta-Surabaya railway, Soekarno Hatta Airport railway, and the Transit-Oriented Development (TOD) in Pegangsaan Dua.
Other projects include LRT Palembang, Makassar-Parepare railway, Rantau Prapat-Duri-Pekanbaru railway, Kulon Progo Airport railway, LRT Medan-Binjai-Deli Serdang, and Siantar-Parapat railway.
Several projects, such as MRT Jakarta North-South Corridor, LRT Palembang, Kulon Progo Airport railway, and Soekarno Hatta Airport railway, have been completed. Funds raised through green bonds, totaling US$ 4.33 billion from 2018 to 2021, contribute to operationalizing these completed projects.
Indonesia’s successful green bond issuances, combined with private sector contributions, have amassed a total of US$ 6.3 billion for green initiatives.