Germany Supports Development of Bus Rapid Transist System in Surabaya

Indonesia and Germany have expanded their cooperation to enhance Indonesia’s public transportation.

IDXChannel - Indonesia and Germany have expanded their cooperation to enhance Indonesia’s public transportation and to develop its market ecosystem for sustainable finance.

Germany is contributing EUR250 million as a subsidized loan and an additional EUR5 million as a grant to support the development of an environment- and climate-friendly Bus Rapid Transit (BRT) system in Surabaya.

This project aims to reduce individual traffic, increase public transport usage, and lower traffic related greenhouse gas emissions. The German development bank KfW will provide th financing and technical expertise throughout the project. 

The project contributes to the Green Infrastructure Initiative (GII), a strategic partnership between Indonesia and Germany promoting environmentally friendly urban infrastructure.

"This collaboration reflects a shared commitment to a more sustainable future, demonstrating the potential of international cooperation in protecting global goods. Indonesia and Germany are working together to drive positive change and contribute to a more sustainable world," the German Embassy said in a media release on Thursday (11/1/2023).

In parallel, Germany, also through KfW, will allocate a grant of 7.82 million EUR to facilitate the growth of Indonesia's Green Bond market ecosystem. This means not only to increase the volume of Green Bond issuances but also to encourage issuers to offer high-quality standard bonds. A portion of the grant will be used to strengthen the capabilities of Green Bond issuers and the Indonesian government. The project seeks to mobilize additional funding for Indonesia’s ambitious climate agenda including its energy transition as set out in the Just Energy Transition Partnership (JETP) between Indonesia, Germany and the other members of the International Partners Group.

Indonesian-German development cooperation dates back to 1958, and both countries have since worked jointly towards Indonesia’s sustainable development in various areas. Currently, the governments of Indonesia and Germany focus on the areas of energy and sustainable urban development including public transport and circular economy as well as forest management and conservation. (WHY)