Jakarta (ANTARA) - Germany has committed to providing 262.82 million euros (around Rp4.48 trillion) to support sustainable development in Indonesia, including improving public transportation and developing a sustainable financial market ecosystem.

Germany will provide 250 million euros (around Rp4.26 trillion) as a subsidized loan and an additional 5 million euros (Rp85 billion) as a grant to support the development of an environmentally friendly Bus Rapid Transit (BRT) system in Surabaya, the German embassy in Jakarta informed in a statement released on Thursday.

The project aims to ease traffic congestion, increase the use of public transportation, and reduce greenhouse gas emissions caused by private vehicles. German development bank KfW will provide financing and technical expertise throughout the project, it added.

The project will also contribute to the Green Infrastructure Initiative (GII) — a bilateral cooperation program between Indonesia and Germany, which aims to support Indonesia's efforts to reduce greenhouse gas emissions, including promoting environmentally friendly urban infrastructure.

Germany will also allocate a grant of 7.28 million euros (Rp124 billion) to support the growth of the green bond market in Indonesia, both in terms of issuance volume and quality standards.

A portion of the grant will be used to strengthen the capabilities of green bond issuers and the Indonesian government, the embassy informed.

According to the statement, the project will seek to mobilize additional funding for Indonesia's ambitious climate agenda, including the energy transition through the Just Energy Transition Partnership (JETP) financing mechanism between Indonesia, Germany, and other members of the International Partners Group (IPG).

Development cooperation between Indonesia and Germany began in 1958, and both countries have since worked jointly to support Indonesia’s sustainable development in several areas.

Currently, the cooperation between the two countries is focused on the areas of energy and sustainable urban development, including public transport, forest management, and conservation.

"This collaboration reflects a shared commitment to a more sustainable future, demonstrating the potential of international cooperation in protecting global goods," the statement said.

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Reporter: Shofi Ayudiana
Editor: Rahmad Nasution
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