Indonesia

With the increase of the population and the development of the country, the needs of Indonesia in terms of power generation, transmission and distribution are huge. Public and private investments in the energy sector in renewable energy (geothermal, solar, wind, hydropower) and energy efficiency (building, transportation) will stimulate the development of the country and support the efforts of the Indonesian Government’s efforts to achieve the objectives of the Paris Agreement.

AFD finances investments and reforms in renewable energy and energy efficiency through development policy loans, direct loans to the public electricity company (PLN), and through dedicated credit lines to local banks supporting private or public investors. PROPARCO provides equity and debt to private companies in the sector. 

The rapid demographic and spatial expansion of Indonesian cities has created significant investment needs in urban public infrastructure.

AFD supports public investments in centralised water and sanitation systems in Indonesia’s main cities, considering that they improve people’s living conditions and protect the environment through water-saving and depollution. The Agency also supports public investments in urban public transportation systems (bus, light train, metro…) in order to offset the rapid growth of private cars in Indonesia. Such projects will generate economic benefits and positive environmental impacts, in particular improved air quality and lower greenhouse gas emissions. Likewise, AFD will support public investments in solid waste management services such as collection and recycling for cleaner cities.

The Agency will also back the efforts of the Indonesian Government and cities in implementing sustainable urban planning practices.

Indonesia is the largest archipelago in the world and has a vast maritime territory, made up of over 17,000 islands and probably the most important reservoir of marine and forestry biodiversity on the planet. Indonesian waters represent several billion dollars of annual revenue through fisheries, aquaculture, transport and tourism. However, these resources are exposed to illegal fishing, global warming, pollution and coastal deforestation.

To support the Indonesia Blue economy, AFD contributes to public investments in natural resource management (sustainable fisheries, mangrove protected areas) through dedicated supports to national agencies such as the Meteorological, Climatological and Geophysical Agency (BMKG), the National Institute of Science (LIPI), as well as the Ministry of Fisheries and its entities. 

Given the country’s geographical situation, the transport and maritime sectors are key elements of the Indonesian economy. In 2014, the Indonesian government adopted a maritime development plan in the five-year development plan (RPJMN) 2015–2019 aimed at improving the sector’s performances.

AFD supported the reforms undertaken by the Indonesian Government through development policy loans and technical cooperation between the Indonesian and French port authorities. AFD also finances public investment in maritime ports through sovereign and non-sovereign loans.

In order to increase domestic financial resources for development and its financial performances, Indonesia has launched major reforms.

AFD supported the reforms undertaken by the Government of Indonesia through development policy loans and technical cooperation between the Indonesian and French tax administrations.