A major agreement to further develop green infrastructure in support of climate change mitigation and adaptation projects in Indonesia was signed today by the Ministry of National Development Planning of the Republic of Indonesia and the European Investment Bank (EIB). The Memorandum of Understanding (MoU), which was signed on Saturday (10/13) afternoon at the Inaya Putri Bali Hotel, Nusa Dua, Bali, was also on the margins of the 2018 International Monetary Fund-World Bank Group Annual Meeting. The MoU, signed by the Minister of National Development Planning/Head of Bappenas Bambang Brodjonegoro and EIB President Werner Hoyer, in the presence of His Excellency Vincent Guérend, Ambassador of the European Union to Indonesia and Brunei Darussalam, will contribute to the 2030 United Nations Sustainable Development Goals as well as the European Union and Indonesia’s climate action agendas.

“The Government of Indonesia is on track to mainstream the implementation of green economy to achieve inclusive development as well as to reduce greenhouse gasses emission. Driven by the New Climate Economy 2018 Report data which revealed that bold climate action could deliver US$ 26 trillion in economic benefits such as creating new jobs and providing better health outcomes globally, between present time and 2030 compared to business-as-usual routine, I am sure it is timely for Indonesia to put in place sustainable development principles that balance the economic, social and environmental aspects by using strategies such as implementing renewable energy and green financing mechanisms and initiating Low Carbon Development Program, to name a few, also with this Memorandum of Understanding signage with the European Investment Bank (EIB),” Minister Bambang said.

The development of renewable energy such as hydro, wind and solar energy infrastructure will support the country in its transition to a more diversified energy mix and improve energy supply to people living in both cities and rural areas. Urban transport is another area where projects could be financed to enhance people’s mobility, cut journey times and improve safety. The EIB has a strong track record of Inter city and regional transport projects, is another area where the such as its investment in the Bangalore and Lucknow metros. “I welcome this landmark agreement. The focus of the European Investment Bank’s operations on climate mitigation and adaptation will provide additional opportunities for important projects for low carbon development, resilient cities and infrastructures. This is a key element of the partnership between the European Union and Indonesia,” His Excellency Vincent Guérend concluded.

The EIB-Indonesia MoU strengthens the collaboration between Indonesia and the EIB initiated in 1995 and fits into the partnership agreement between Indonesia and European Union which entered into force in 2014. The government of Indonesia and the EIB will focus on key investment in green infrastructure sectors that will increase the country’s resilience to natural disasters in the medium and long term, and improve the lives of people in an immediate way. Areas of potential collaboration notably encompass: renewable energy, transport, including urban transport and waterways, lower carbon and efficient energy generation, forestry, waste and water management as well as low carbon technologies.

“I would first of all like to express my deepest sympathy to the government of Indonesia for all the human lives lost during the terrible disaster on the Lombok and the Sulawesi islands. This is a wake-up call for all of us to support the building of more resilient societies, and to do so in partnership. Collaboration is the only way to deal with the scale of the global challenges facing us today. This Memorandum of Understanding represents a new chapter in the partnership between the European Investment Bank and Indonesia. With this agreement we want to bring our expertise and support where it is most needed. As the European Union Investment partner, we intend to complement what other International Financial Institutions and foreign governments are already doing in the country to develop green infrastructure, supporting projects that help communities adapt to the effects of climate change and through investment in clean energy to mitigate its impact as well as improving people’s daily lives,” EIB President Werner Hoyer emphasized.

The heads of the leading multilateral development banks (MDBs) meeting at the Global Infrastructure Forum 2018 (GI Forum) today expressed their condolences following the tragic loss of lives and livelihoods in Sulawesi, Indonesia and reaffirmed their commitment to work together to deliver infrastructure that is resilient, inclusive, and sustainable.

The important role of technology in this goal was at the heart of discussions at the GI Forum under the theme “Unlocking Inclusive, Resilient, and Sustainable Technology-driven Infrastructure”. 2018 marks the first time this annual forum is being held outside of the US. Indonesia’s Vice President Jusuf Kalla opened the discussion.

The MDBs agreed that their joint efforts should be based around the following priorities:

• Increase technical assistance and advisory services for knowledge creation and knowledge transfer;
• Disseminate knowledge through collaborative events that support the delivery of bankable projects;
• Contribute to delivering sustainable infrastructure through the MDB Information Cooperation Platform;
• Mobilize sustainable finance at scale;
• Support sustainable public procurement;
• Identify infrastructure and capacity gaps, particularly in least-developed countries, landlocked developing countries, and small island developing states and African countries.

These pledges are included in the MDBs’ Outcome Statement.

The GI Forum gathered private sector investors with representatives from the United Nations and leaders from the African Development Bank, Asian Development Bank, Asian Infrastructure Investment Bank, European Bank for Reconstruction and Development, European Investment Bank, Inter-American Development Bank, International Finance Corporation, Islamic Development Bank, New Development Bank, and the World Bank.

The forum comprised two opening sessions. The first looked at how technology, such as solar energy systems, blockchain, and big data, can be used to make infrastructure more sustainable. The second discussed how to increase private infrastructure finance.

Other sessions looked at using technology to achieve the crucial but difficult “last mile” of getting services to end users, good practices in scaling up investments in infrastructure, ways of financing the global infrastructure gap, and maximizing innovative climate finance for sustainable infrastructure.

The infrastructure needs across the world are huge. An estimated 1 billion people have no access to electricity while over 660 million people have no access to clean drinking water. These needs must be met if the global community is to meet commitments to the Sustainable Development Goals. New technologies and approaches such as smart transport systems and innovative climate finance can help to fill the infrastructure gap. They can also help build infrastructure that can withstand climate change and natural disasters.

A joint report by 13 development banks released in June noted that in 2017, MDBs and development finance institutions mobilized $73.3 billion of long-term private and institutional investor cofinancing for infrastructure such as power, water, transportation, and telecoms. This compared with $68.7 billion mobilized in 2016.

The full agenda of the Global Infrastructure Forum 2018 is available on the GI Forum’s website, along with other information from past fora and publications and other materials from participating MDBs.