Indonesia is made up of countless islands and is particularly exposed to climate change. The country is aware of the dangers of unbridled development, which leads to an increase in greenhouse gas emissions. 

The Indonesian Government has responded to this situation: it aims to take advantage of the country’s strong renewable energy potential. The objective: develop hydro, geothermal and biomass energy. 

AFD is supporting Indonesia’s efforts by providing technical assistance and loans to promote renewable energy projects.
 

Urban growth in Indonesia is following the trend of economic development. With 6% of annual GDP growth and 260 million inhabitants, the country faces galloping urbanization. 

AFD is helping improve access to sanitation and transport for urban populations via two projects: 

• Sanitation in Bogor, an ambitious project which integrates wastewater treatment, drainage and waste management;
• Controlling the carbon footprint in the Bandung region by improving rail transport provision.

Indonesia is a country with invaluable forestry and maritime resources – one of the planet’s biodiversity hotspots. However, illegal fishing and unplanned logging are threatening the country’s ecological balance and its long-term resources.

On the maritime side, Indonesia is targeting a more law-abiding fishing sector. AFD is supporting the fight against illegal fishing, sustainable fisheries resources management, and the strengthening of port and logistics services.  

On the forestry side, we are supporting projects which respect the quality of life of local communities and involve them in sustainable forest management. 

AFD implements appropriate tools to contribute to Indonesia’s efforts to combat climate change. We assist Indonesian banks in financing renewable energy projects (credit lines). We also provide technical assistance, which strengthens the expertise of banks in assessing and managing the risks associated with this type of project and ensures these projects are viable and sustainable. 

At national level, AFD supports the Government’s tax reforms, which aim to improve the expenditure-income balance.