AFDs experience in Indonesia

financing green investments

Indonesia Pavilion

COP21, Paris December 3rd, 2015

1. AFD General Overview
 1.1 AFD Group : Status and mission

Agence Franaise de Dveloppement (AFD), a French public financial institution

dedicated to the fight against poverty and the promotion of sustainable development.

AFD Group operates on four

continents (72 offices including
French overseas territories).

It supports projects and public

policies through a wide range of
financial and non financial
tools (grants, loans, equity,
guarantees, technical assistance,
training, etc).

In 2014, AFD earmarked EUR

8.1bn to finance projects that
improve living conditions, boost
economic growth and protect the
planet.

AFDs experience in Indonesia financing green investments 3

 AFD commitments, by sector and tool
1.2
(2014)

AFDs experience in Indonesia financing green investments 4

 AFD climate related funding objectives
1.3
(2012-2016)

Global objective : 50% of AFDs funding must have a climate co-benefit

AFDs experience in Indonesia financing green investments 5

 2. Financing green investments in Indonesia

AFD Climate Financing: the case of Indonesia

 2.1 AFDs resident mission in Indonesia

AFD operating in Indonesia since 2007

Mission : promoting green and inclusive growth

In line with AFDs strategy & operations across the region

Main sectors of intervention

Energy
Transportation
Forestry and land-use planning
Fisheries/Biodiversity

-> Cross-cutting : promoting a low-carbon development

AFDs experience in Indonesia financing green investments 7

 Focus on Renewable Energy and Energy
2.2
Efficiency
A priority for the Republic of Indonesia

High and increasing demand for energy

High potential of Renewable Energy / Energy Efficiency and Conservation in

Indonesia

High impacts in terms of GHG emission reductions

AFDs intervention at different levels

Support to national policy formulation (ex: Sustainable and Inclusive Energy

program Loan- SIEP, phase I; studies to support to Feed-in-Tariff development,
ESCO and Low Carbon Modelling Initiative)

Direct support to large scale projects (ex : project-based loans to PLN)

Partnerships with local financial institutions to promote small and medium scale
projects (ex: PT SMI)

AFDs experience in Indonesia financing green investments 8

 AFD and SMI Partnership, with support
2.3
from the DFID
Loan 100 M USD

Grant
Quasi Equity 5 M USD
Technical Assistance

Commercial loans
Interest free loans
Equity
Advisory services
Expected Results
300 M USD Investments generated Project
Project
Project
sponsor
Project
sponsor
30 MW RE Capacity installed sponsor
Project
sponsor
Project
100 000 tons C02 equivalent/year sponsor
Project
Reduction of GHG emissions sponsor
ER / EE
sponsor
sponsors

AFDs experience in Indonesia financing green investments 9

Terima Kasih!
 Ongoing projects in Indonesia (projects
loans and budgetary support)
Project name Amount Approval by Project description
AFDs board

ENERGY
CCPL I to III 800 M$ 2008 to 2010 Climate Change Program Loan, phases I to III : Energy, Forestry and Land-used sectors

Java-Bali 50 M$ 2009 Rehabilitation of the distribution network in 5regions in the islands of Java and Bali by installing new distribution
lines, new transformers, new feeders for network reconfiguration and new capacitors.
West Supplying of clean electricity from Malaysia to the West Kalimantan region as well as the connection of new clients
50 M$ 2011
Kalimantan thanks to grid extension (construction of a 275 kV transmission network)

Jakarta 1 20 M$ 2012 Improvement of the energy efficiency of the Jakarta conurbation electricity system High voltage component (500
kv)

Jakarta 2 100 M 2014 Improvement of the energy efficiency of the Jakarta conurbation electricity system - Construction of the high voltage
transmission line between Dori Kosambi and Muara Karang

SIEP 150 M$ 2015 Program Loan : Sustainable and Inclusive Energy Program : sector governance, private participation enabled,
regulatory environment for increased access to clean energy and energy efficiency improved

Urban Transport
Public
Transport in 46 M 2012 Construction of a railway viaduct in the center of Bandung city (4,1 Km)
Bandung

Fishery/biodiversity
Indeso 30 M $ 2011 Protection of marine resources and the prevention of risks related to environmental destruction through the implementation of
a multidisciplinary approach to analyze and predict the evolution of oceanic circulation in Indonesian waters.

Bank/Finance (credit lines) => ENERGY

Mandiri I + II 300 M$ 2009 - 2012 Promote RE and EE projects
Bukopin 50 M$ 2013 Promote RE and EE projects
PT SMI 100 M$ 2014 Promote RE and EE projects, Climate Change Investments

AFD 11
 Ongoing projects in Indonesia - Mapping

LAFD en Indonsie
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