Indonesia

In Indonesia, the focal area of Environment includes forestry and biodiversity, as well as solid waste management. In the area of forestry, currently four REDD projects are being implemented (REDD stands for “Reducing Emissions from Deforestation and Forest Degradation”). These being pilot projects, KfW is in a pioneer role internationally. At present, Indonesia is losing two million hectares of forest annually due to illegal logging, slash and burn practices or concessions. KfW's projects aim to show that local development, sustainable forestry, the conservation of biodiversity and climate protection can go hand in hand. In doing so, village communities which live in and from forests, are top of the agenda. The projects aid the communities to manage forests sustainably.

Municipal waste management is often unable to meet the growing requirements of individuals and companies. For this reason, KfW rolled out a program supporting waste management in five cities.

In Indonesia the potential for geothermal energy is particularly high. However, it is very costly and risky to exploit possible geothermal sources. One geothermal project in Kamojang, West Java, already is being implemented. Likewise, two Policy Based Loans in the energy sector have been implemented together with World Bank and the Asian Development Bank (ADB). Here, promotional loans and loans with interest subsidy out of budget funds of the German Government are employed.

Project information – Solid Waste Management  (PDF, 203 KB, non-accessible)

Project information – Forest  (PDF, 153 KB, non-accessible)

Project information – 1000 Islands  (PDF, 160 KB, non-accessible)

KfW and the German Gesellschaft für Internationale Zusammenarbeit (GIZ) cooperate in the area of vocational training. Together KfW and GIZ are providing support to the Indonesian government in reforming vocational training. Up till now, many young people have been unable to find work, although there is a lack of qualified professionals. One reason is that the apprenticeships and trainings on offer do not meet businesses' requirements. The project aims at boosting the quality of training and improving its underlying conditions. To this end, GIZ and KfW are cooperating with 23 vocational schools in the provinces of West Java, Central Java, Yogyakarta, eastern Kalimantan and South Sulawesi. KfW finances the equipping of workshops and class rooms, as well as training teaching staff to use and maintain the teaching aids in an optimal way. The commitment should ensure that young people find better paid work, while boosting the competitiveness of the economy and reducing poverty.