Bank Indonesia Policy Mix

Indonesia's Green Project Priority Sector Indonesia realizes that investment in green and sustainable infrastructure is becoming increasingly important in post-pandemic. Regarding the NDC targets in reducing carbon emission, Indonesia has outlined the PPP priority sectors of 2020-2024, in which two sectors are related to climate issue, respectively: • Urban Transport, and Waste Management PPP Focused Sectors 2020-2024 Water and Sanitation * Urban Transport Gas Distribution + Housing Health Facility Waste Management ப ☐ Environmental quality aspects of projects are considered since the beginning of PPP project cycle, notably in planning and preparation stage, such as climate change issues and promoting green financing. The Project Development Facility (PDF) from MoF is focused to assist those priority sectors while considering environmental and other quality aspects during project preparation and its implementation. Additionally, GOI also initiate the development of ESG framework to be implemented to projects which involve private financing and at the same time obtain government supports. ப Source: Ministry of Finance PPP Green Project 1 City Street Lighting, Surakarta, Central Java 2 Waste Management, Legok Nangka, West Java 3 Waste Management, Jatibarang, Central Java Expected to contribute for 70% energy efficiency by using LED technology as well as carbon emission reduction Expected to manage around 2,000 ton waste per day from 6 municipals Expected to manage around 1,000 ton waste per day from Semarang City 107

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