Indonesia's 13 Environmentally Friendly Transportation Infrastructure Projects: What Are They?

A recent Climate Bonds Initiative report indicates that Indonesia is currently undertaking 13 green or low-carbon transportation infrastructure projects that can be financed through green bonds. These projects include the continued development of Jakarta's MRT, LRT, and others.

Seven out of the 13 projects are located in Jakarta. These seven projects are: the LRT Gading-Jakarta International Stadium (JIS), MRT Phase 3 Kalideres Ujung Menteng (East-West Corridor), MRT Phase 4 Fatmawati-TMII, the Jakarta MRT North-South Corridor, the Jakarta-Surabaya railway, the Soekarno-Hatta Airport Rail Link, and the development of the Pegangsaan Dua Transit-Oriented Development (TOD) area.

The remaining projects are: the Palembang LRT, the Makassar-Parepare railway, the Rantau Prapat-Duri-Pekanbaru railway, the Kulon Progo Airport Rail Link (New Yogyakarta International Airport/NYIA), the Medan-Binjai-Deli Serdang LRT, and the Siantar-Parapat railway.

Several projects on this list are already completed, including the Jakarta MRT North-South Corridor, the Palembang LRT, and the Kulon Progo and Soekarno-Hatta airport rail links. Funding raised from green bonds can be used for the operation of these completed projects.

The Indonesian government successfully raised US$4.33 billion from green bond issuances between 2018 and 2021. Including private sector issuances, a total of US$6.3 billion has been raised from green bonds.