Germany further supports Indonesia with around 37 million EUR in grant funding

Indonesia and Germany sign agreement on projects central to Indonesia’s development

Jakarta, 14 MAY 2019 – Indonesia and Germany sign an agreement regarding technical cooperation marking the start of important bilateral collaboration projects with a total volume of approx. 37 Million EUR in grant funding financed by the German Federal Ministry for Economic Cooperation and Development (BMZ). The 60 years of Indonesian-German cooperation continue and now expand with four new projects in the areas of effective governance, technical and vocational education and training (TVET) and the protection of environment and biodiversity.

Supporting Indonesia’s endeavours of achieving the Agenda 2030 and the Sustainable Development Goals, the Indonesian-German project on “Domestic Resource Mobilisation for Sustainable Development” will focus on fiscal policy and tax management to finance important aspects of the country’s development, including in the fields of infrastructure and social programmes.

Aiming to ensure competitiveness of the workforce of tomorrow and ensuring that their skills are responding to the labour markets demands, the cooperation project on “TVET System Reform” will support Indonesia’s vocational education reform. Within this project, both public and private sector will be strengthened in their collaboration to increase high quality education and training.

Peatlands are natural storage systems for CO2: When destroyed, they release CO2 emissions that harm the climate. As further effort on protecting the environment, the Indonesian-German project on “Peatland Rehabilitation and Management” works together with the provincial government of North Kalimantan to sustainably manage the peatland ecosystems in the Kayan Sembakung Delta, with the involvement of representatives of the private sector, villages and the civil societies.

The joint collaboration project on “Sustainable Agricultural Value Chains in Indonesia” supports to identify alternative income sources to timber and palm-oil for smallholders that are both domestically and internationally marketable and that can prevent from further deforestation Indonesia.

German Ambassador to Indonesia, Peter Schoof states: “As one of the Global Development Partners of Germany, Indonesia is key player to tackle global development issues. Germany supports Indonesia’s determination in achieving the Agenda 2030 and its commitment to mitigate climate change.”

The Director General of Budget Financing and Risk Management, from the Indonesian Ministry of Finance, Luky Alfirman conveys: “Indonesia has been working together with Germany since 1958. We have a long-standing cooperation history and we are looking forward to continuing our successful cooperation with regard to finding sustainable solutions to Indonesia’s core development issues as well as global development issues.”

The German contributions of the projects will be implemented by BAPPENAS and the relevant Indonesian line ministries and subnational institutions, supported by GIZ, a major German development agency.

Indonesian-German development cooperation dates back to 1958. Since then, Germany has supported Indonesia in many areas contributing to the country’s development. Currently, Germany is supporting Indonesia in the focus areas of Energy, Sustainable Economic Development/Technical Vocational Education and Training and Environmental protection. Additionally, governance and private sector cooperation remain central pillars of the Indonesian-German development cooperation.

Signing of a Technical Cooperation (TC) Agreement between Germany and Indonesia (Photo by: German Embassy - Jakarta)
Signing of a Technical Cooperation (TC) Agreement between Germany and Indonesia (Photo by: German Embassy - Jakarta)
Signing of a Technical Cooperation (TC) Agreement between Germany and Indonesia (Photo by: German Embassy - Jakarta)
In frame: German Ambassador, GIZ Country Director and DG of Budget Financing, Ministry of Finance IDN (Photo by: German Embassy - Jakarta)