Germany to provide up to $611 million for development in Indonesia
Ulu Masen forest, Aceh, Indonesia (source: flickr/DFID, creative commons)
Alexander Richter
17 Sep 2013
As part of a comprehensive agreement between the Indonesian and German government, Germany is going to fund up to $611 million for geothermal development in Indonesia, of which $530 million will be provided in the form of loans for geothermal projects.
Reported today, the governments of Indonesia and Germany have signed a comprehensive agreement in the form of financial and technical cooperation on geothermal projects. The signing of the agreement made ??by the Acting Director General of Debt Management (DGAT) Robert Pakpahan, Funding Bappenas Deputy Pensions Adi Suryabrata and the German Ambassador to Indonesia George Witschel yesterday at the Ministry of Finance, Jakarta.
According to Robert, the value of cooperation agreed upon by the two countries reached EUR458 million ($611 million), equivalent to Rp 7 trillion. Of the total value of the loan, as much as EUR 400 million ($530 million) will be for the provision of loan facilities, which can be used for geothermal development and solid waste management system .
The Government is still selecting projects which will be implemented from the fund. “Cooperation, signed this time represents only the first step, next will be a more technical agreement if the project has been decided,” said Robert.
Meanwhile, according to Wismana, one of the projects that will definitely get the loan funds are Seulawah geothermal projects, in Aceh. Because the geothermal project has been initiated in Indonesia with Germany since 2010.
George Witschel added, Indonesia has been chosen as a grant recipient because Indonesia has the potential to develop geothermal industry. Indonesia is also considered to have natural resources and human resources support. According to George at this time there are several areas of potential and meet the qualifications desired by Germany.
While sisan funding of geothermal, which amounted to EUR 58 million ($77 million) will be used for technical assistance. Such as climate change mitigation programs and make forest management pilot projects, as well as reducing emissions due to forest degradation.
Both governments plan a meeting later this year in November to discuss the continuation and the use of grant funds.”
Source: Industri.Kontan
