Indonesia to receive €2.5 bn in loans from German development ministry for climate projects

The German government plans to support climate and environmental protection projects in Indonesia with credits worth 2.5 billion euros by 2025, the German development cooperation ministry (BMZ) has said. Funds will be provided for infrastructure such as clean mobility projects in urban areas; waste and water management, and other projects that reduce emissions and ocean pollution in the country, which ranks within the top ten worldwide greenhouse gas emitters. “Considerable investments are needed to make progress on climate action and improve the living conditions of the population,” German development cooperation minister Svenja Schulze said after a digital meeting with Indonesian counterparts. She explained the project has “a high priority” for Germany’s development cooperation efforts, which the government is aiming to intertwine more closely with general climate action efforts.

Indonesia, the fourth most populous country in the world, has been a key partner for German development cooperation for several years. As part of its G7 presidency this year, Germany aims to establish climate, energy and development partnerships similar to the the Just Energy Transition Partnership with South Africa — a pact between the UK, France, Germany, the EU and the US to help South Africa phase out coal, which was sealed at COP26 in Glasgow.