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40 million euros loan from AFD to enhance urban mobility and accessibility in Indonesia with the Mass Transit Program Support Project (MASTRAN)
The Government of Indonesia and the Agence Française de Développement (AFD) signed a Credit Facility Agreement for the financing of the MASTRAN project, amounting USD 40 M. This support is part of a co-financing with the World Bank, bringing the total amount of the projet to USD 264 M. With this project, Indonesia will improve urban mobility and accessibility on high priority corridors in selected urban areas through BRT (Bus Rapid Transit) systems and strengthen institutional capacity for mass transit development.
With a majority of its population living in urban areas, Indonesia is confronted with a poor quality of urban transport services. Traffic congestion in the 28 largest cities costs almost USD 5.6 billion per year, or around 0.5% of GDP. Furthermore, the transport sector has become one of the main contributors to greenhouse gas emissions, mainly in cities - it thus generates 25% of energy-related emissions in Indonesia.
The program will contribute to the sustainable urban development of the metropolitan areas of Bandung, on the island of Java, and Medan, on the island of Sumatra. In total, approximately 2.4 million inhabitants will gain improved access to sustainable transport. It will also save an estimated 16,000 tons of CO2 equivalent per year and will have a favorable impact on road congestion and air quality. These projects, in the operational phase, will contribute to the creation of stable jobs and promote the professionalization of informal transport operators. The program will also ensure effective access for women to the new public transport system and related employment opportunities. Indeed, women will benefit from the two BRT projects, as they rely heavily on public transport for their daily activities due to their limited access to private vehicles, as revealed by the diagnostics on the Gender and Social Inclusion Inequalities. Also, women’s satisfaction with the BRT safety and the number of women employed by BRT operators will be specifically monitored. The institutional reforms carried out under the program aim to establish a more efficient management of public transport. Finally, this program has a strong potential for capitalization and replication with other Indonesian cities.
The project is structured around two components:
- Institutional Development, Capacity Building and Technical Assistance
- Demonstration Mass Transit Systems in Selected Urban Areas
It is an integral part of France's contribution to the European Global Gateway Strategy in ASEAN, on its sustainable connectivity component.
Learn more here about AFD’s action in Indonesia
Contact : afdjakarta@afd.fr