Indonesia, the world’s largest archipelago, is one of the most populous countries in the world. It is an emerging power, but must nevertheless reconcile climate change with growth. AFD is supporting its low-carbon energy development, which respects its exceptional natural heritage.
  • logo linkedin
  • logo google plus
  • logo email
Indeso center near, Indonesia
AFD and Indonesia: Striking a balance between growth and respect for biodiversity
Indeso center near, Indonesia

Developing renewable energies

Hydropower plant in Indonesia

Developing renewable energies

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.

Controlling urban development

Railway line Banjar-Bandung, Indonesia

Controlling urban development

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.

Preserving maritime and forestry resources

Satellite for real-time oceanographic observation and analysis, Indonesia

Preserving maritime and forestry resources

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

Improving financial management

The spatial oceanographic center to fight against illegal fishing and protect coral, Indonesia

Improving financial 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.

billion commited betwen 2007 and 2016
projects financed
of financing in the energy sector

Indonesia is one of the fastest growing economies in Asia and the world’s fourth most populous country (260 million inhabitants). The country has recently established democratic institutions, which make it highly attractive to foreign investors. However, the archipelago is faced with a lack of infrastructure and a high poverty rate.

The Indonesian archipelago is located in the heart of the Indian Ocean and is made up of over 17,000 islands. With its 50,000 km of tropical coastlines and half of its surface area covered by forests, Indonesia is a biodiversity hotspot. This biodiversity is threatened by human activity and climate change. 

Indonesia has set out on the path of sustainable development, while strengthening its political and financial good governance

AFD has been operating in Indonesia since 2007. It was initially involved in “post-tsunami” action and today supports more inclusive and environmentally friendly growth.

Interactive map
This map is for illustrative purposes only and does not engage the responsibility of the AFD Group
Funding type


Funding type


Display local antennas


Launch search
See map of all projects


Evaluation document

Indonesia Climate Change Programme Loan (ICCPL)

In close partnership in 2008, 2009 and 2010, JICA and AFD approved a series of “climate” budget loans to the Indonesian Government in order to facilitate the design and implementation of an ambitious ...
Jun 2014
Research document

Indonesia: Reforms to Meet Development Challenges

The Indonesian economy is experiencing structural changes and must deal with new challenges in an uncer¬tain international setting. In the past decade, its industry has undergone reprimarization (focus on ...
Jun 2018
Research document

Informal Recycling vs municipal Waste Service in Asian cities: Opposition or Integration?

Despite being generally poorly recognized by public authorities, informal recycling remains nevertheless a major component in the waste sector, which questions the legitimacy of the official waste arrangements. A look ...
Jan 2018
Research document

Energy Efficiency Policies in China, India, Indonesia, Thailand and Vietnam

Most papers dealing with energy efficiency policies focus on the policies and measures implemented in OECD countries and this may lead one to think that only the “rich” countries are ...
Apr 2013