- EIB and MRT Jakarta sign Memorandum of Understanding (MoU) as a first step towards more concrete financial and technical support for the sustainable and green urban development of Jakarta
- EIB is interested in financing expansion of the urban rail system and urban regeneration of areas along the transport routes
- The initiative will support ambitious climate action goals set by the Government of Indonesia to reduce GHG emissions by 41% within this decade
The European Investment Bank (EIB), the bank of the European Union and the biggest multilateral bank in the world will work with PT Mass Rapid Transit Jakarta (MRT Jakarta), the city’s public transport authority, in developing the city’s public transport network and financing urban regeneration of residential and business areas along the transport routes.
The Memorandum of Understanding between EIB Global, the bank’s dedicated development arm, and MRT Jakarta signed today in Luxembourg is the first step in securing financial and advisory support from the EIB for expansion of the urban railway system and regeneration of urban areas along the bus and railway transit routes.
The expanded transport network will provide safer, more affordable, green and sustainable commuting to more than 10 million citizens of Jakarta, reduce commuting times, cut air and noise pollution, and support the Republic of Indonesia in achieving its ambitious climate action targets. Urban regeneration of areas along the line is also expected to contribute towards improved living and business conditions in the national capital.
Kris Peeters, EIB Vice-President in charge of operations in Indonesia, said: “Today we start a new chapter in the EIB–Indonesia relationship towards clean, carbon-neutral, climate-friendly urban development of the national capital, Jakarta. As part of Team Europe, we stand ready to support more sustainable infrastructure development projects like this one, accelerate climate action across Indonesia and invest in the country’s green, digital and sustainable future. I would like to thank our partners at MRT Jakarta and the regional government of Jakarta for the opportunity to be a part of Jakarta’s modernisation and transformation into a green and sustainable city.”
Anies Rasyid Baswedan, the Governor of the Special Capital Region of Jakarta, said: “In recent years, Jakarta has been transformed into a city with the concept of a transit-oriented area. We are increasing the number of pedestrian paths and bicycle lanes and increasing the coverage of public transportation to more than 80% of Greater Jakarta," explained Governor Anies. “What we are doing is not just building Jakarta, but joining the world in combating the climate crisis. We hope that in this process, MRT Jakarta will become the backbone of the public transportation system in Jakarta," he added. By building a public transportation system, Anies added, Jakarta is managing two issues. “Providing international services in terms of people’s mobility and addressing environmental challenges, one of which concerns solar energy. This of course requires substantial investment and a partnership that is willing to look at this issue in a long-term context,” he said.
H.E. Andri Hadi, Ambassador of the Republic of Indonesia to the European Union, said: “I welcome the signing of this MoU, which will enhance cooperation between Indonesia and the European Union, and hope that the MoU shall work in terms of offering common efforts and goals to establish sustainable, inclusive and modern transportation in Jakarta. I have invited the EIB to support the three priorities of Indonesia’s G20 Presidency, namely global health architecture, energy transition, and digital transformation. All three areas are among the EIB’s priorities, particularly in implementing the concept of the European Union’s Global Gateway.”
Representatives of the Indonesian Embassy to the European Union, the Governor of the Special Capital Region (DKI) and MRT Jakarta officials visited the EIB headquarters in Luxembourg on 16 May 2022 for the signing of the MoU, making it the first visit by a high-ranking Indonesian delegation to the Bank.
In November 2021, the EIB announced plans to step up its activities in Indonesia and help translate the European Union–Indonesia partnership into tangible improvements for the citizens of Indonesia. EIB Global’s representative office in Jakarta opened in 2021, enabling the Bank to increase its presence on the ground and intensify its activities.
A reliable partner for climate action and sustainable development of Indonesia
Working in Indonesia, EIB Global will prioritise investment in infrastructure, renewable energy, waste and water, marine litter and plastics reduction, and support for the Indonesian Government`s UN Sustainable Development Goals (SDG) Agenda.
The EIB Global will also expand Team Europe`s support for the Government of Indonesia in achieving its plans to reduce country’s greenhouse gas emissions by up to 41% by 2030. Low-carbon urban infrastructure development projects like the bus and rail rapid transit systems are key to reducing global greenhouse gas emissions as cities worldwide produce some 70% of all these emissions worldwide.
This is the third urban rapid transit system the EIB Global currently supports in Indonesia, including technical advisory support the EU Bank provides for the cities of Batam and Makassar through the Financing Energy for Low-carbon Investment - Cities Advisory Facility (FELICITY).
The EIB Global brings new investment opportunities to partner countries around the world
The EIB Global is the new development branch of the Bank launched in 2022. The branch builds on more than six decades of EIB operations outside the European Union and brings all the resources of the EIB to bear on operations outside the EU. EIB Global will foster strong, focused partnerships with countries around the globe, including Indonesia.
EIB Global will also ensure that countries such as Indonesia benefit from financing initiatives introduced by the European Union such as the European Green Deal and the EU Global Gateway. These programmes will improve EU partnership with countries and provide long-term sustainable funding for connectivity projects, accelerate climate action and digitalization, and strengthen healthcare systems, education and research.
EIB Global will ensure countries outside the EU, including Indonesia, can benefit from billions of euros in opportunities. In Indonesia, EIB Global is looking to support urban development, renewable energy and climate-adaptation projects.
Background information
EIB Global is the EIB Group’s new specialised arm dedicated to increasing the impact of international partnerships and development finance. EIB Global is designed to foster strong, focused partnership within Team Europe, alongside fellow development finance institutions, and civil society. EIB Global brings the Group closer to local people, companies and institutions through our offices across the world.
https://www.linkedin.com/company/eib-global/
About EIB in Asia:
For 25 years, the European Investment Bank has supported economic development in Asia and the Pacific region. The projects we help finance make people’s lives easier - from cutting travel times in Bangalore with a new metro line, to providing access to drinkable water and rural roads in Cambodia.
In Asia, we have chosen to focus our lending on climate action across all sectors. We also work to include gender equality in our projects, ensuring that women, men, girls and boys can benefit from projects equally and equitably.