Technical Assistance II
Indonesia is intensifying its efforts to achieve the Sustainable Development Goals (SDGs) and meet climate commitments while creating lucrative investment opportunities in sustainable development projects for international investors. During a key stakeholder meeting with European counterparts from the Directorate-General for International Partnerships (DG INTPA), the European Union Delegation to Indonesia and Brunei Darussalam, and several European financial institutions, the Government of Indonesia presented two electric vehicle projects, four Public-Private Partnership initiatives in waste management, renewable energy, and infrastructure, as well as a private sector project in sustainable mining and mineral processing.
This pivotal gathering took place on 7 September 2023 and was co-hosted by Indonesia's Ministry of Investment/BKPM and ARISE+ Indonesia. The meeting at the BKPM office aimed to advance dialogues and identify Indonesian sustainable projects that might qualify for financing through the European Union's Global Gateway Initiative and the European Fund for Sustainable Development Plus (EFSD+).
Representing Indonesia were high-level officials from the Coordinating Ministry for Economic Affairs, the Coordinating Ministry for Maritime Affairs and Investment, the Ministry of National Development Planning (Bappenas), the Ministry of Investment (BKPM), the Ministry of Environment and Forestry, and the Secretariat of the Just Energy Transition Partnership (JETP).
In a significant move to strengthen bilateral relations, Nurul Ichwan, Deputy Minister for Investment Promotion at Indonesia's Ministry of Investment/BKPM, extended a warm welcome to the EU delegation led by DG INTPA. Mr Nurul expressed his appreciation for the continued dialogue built upon the previous mission by the Indonesian delegation to Europe this past May, facilitated by ARISE+ Indonesia.
"We are delighted by DG INTPA's visit, which signifies the EU's keen interest and positive intent to build upon our initial dialogues from last May," said Mr Nurul. "This engagement could mark a promising beginning for collaborative efforts between Indonesia and the EU in achieving the Sustainable Development Goals."
Leading the European delegation, Dr. Kay Parplies, Head of Unit for Investment and Innovative Financing at the DG INTPA, lauded the Indonesian government for its thorough preparation of projects eligible for financing under Global Gateway and EFSD+ frameworks.
During the meeting, Dr. Parplies explained that the main objective of DG INTPA's visit to Indonesia was to explore and identify opportunities for collaboration within the financial frameworks of the Global Gateway and EFSD+. Acknowledging the unique investment landscape in Southeast Asia and Indonesia compared to Africa—where the first EFSD was rolled out, Dr. Parplies conveyed the EU's willingness to assist Indonesia in adapting these financial frameworks to expand the scope of feasible investments.
Dr. Parplies emphasised the EU's readiness to mitigate investment risks by offering a highly flexible guarantee product to eliminate the risks currently deterring investors, hopefully encouraging more capital contribution.
"Today presents a great opportunity for us to understand precisely which projects we can support and how we can assist in pushing the frontier of what's feasible in investments even further," stated Dr. Parplies.
During their visit to Jakarta, the officials from DG INTPA not only met with various ministries and institutions but also held a roundtable meeting with Indonesian and international banks, which provided a useful opportunity to discuss how the EU’s financing instruments could be leveraged to alleviate the risks associated with certain types of projects - including in the renewable power generation sector.
From Jakarta, the delegation headed to Batam for a series of meetings and site visits.
For more information on the visit, please read here
For more pictures, please see Photo Gallery
