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Indonesia is one of the world’s most biodiversity-rich countries and home to the planet’s second-largest forest area. Made up of countless islands, it is particularly vulnerable to the consequences of global warming. 

Today, Indonesia has become a key actor in the fight against climate change and is one of the very first emerging countries to have adopted “climate” policies at both national and local levels. With over 260 million inhabitants, it is now facing considerable socio-economic challenges. AFD is assisting Indonesia in implementing its development policy.

Operating in the country since 2007, the Agency has just released its new strategy to work side by side with Indonesia, fully in line with the country’s two major priorities and AFD’s new Strategic Orientation Plan: environmental and climatic challenges and the population’s well-being. 

  • 1st final goal of AFD: support Indonesia’s development towards a more inclusive society and enhanced well-being for its population. This means supporting actions that help to mitigate regional and social disparities, but also improve the population’s living conditions, through quality urban services (water, sanitation, mobility, etc.), enhanced connectivity for the archipelago, and greater equity and effectiveness in public spending.  
  • 2nd final goal: support Indonesia’s efforts to tackle climate and environmental issues. Given Indonesia’s significant contribution to global greenhouse gas emissions, its sensitivity to the effects of climate change, and the risks threatening its natural heritage, AFD will back Indonesia’s efforts to move the energy transition forward, notably by developing renewable energies and energy efficiency, but also by promoting the sustainable management of natural marine and forest resources. The Agency also supports all efforts to implement the commitments made by Indonesia under the Paris Agreement. 

AFD will strengthen its support to Indonesia’s priority sectors and to those sectors in which the Agency can bring the highest added value: 

  • energy, which is set to remain one of the key intervention sectors. This will involve responding to the country’s energy needs and  supporting low-carbon development paths.
  • preservation of ecosystems: AFD will support the sustainable management of natural resources, particularly marine resources. 
  • improved connectivity: AFD will support the reforms launched by the government and will finance transport infrastructure, to reduce the country’s regional and social inequalities. 
  • urban development, which is at the crossroads of environmental issues (air quality, water pollution, sanitation, etc.) and social questions (improved living conditions for inhabitants). 
  • the effectiveness of public action: AFD will provide support, notably in the area of financial governance. 

In Indonesia, we are mobilising all the financing tools of a development bank to support the Indonesian government’s reforms and the public and private investments that contribute to the greater well-being of Indonesian populations and the global fight against climate change.”, Emmanuel Baudran, director of the Jakarta agency.

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