Germany Provides Loan For Waste Management Project In Indonesia

Jakarta, May 6 (Antara) - The German state-owned development bank KFW is to give loan to Indonesia to finance the construction of solid waste processing project in five cities in the country, a press release from German Embassy in Jakarta received here on Monday said. The project will be carried out by Indonesian Ministry of Public Works in 5 cities or districts namely in Malang, Jombang and Sidoarjo (East Java province), Pekalongan (Central Java province) and Jambi province. According to the embassy`s statement, Chief Executive Officer of KfW Bankengruppe Dr. Ulrich Schr�der recently signed a loan agreement with the Government of Indonesia for developmental financing within the framework of bilateral financial cooperation. KfW will provide a development loan up to EUR 75 million to finance sanitary landfill cells including sorting and composting plants as well as an implementation consultancy to support in planning, tendering and supervising the construction. In order to reduce the interest rate of this loan, the German Government provides a grant. Accompanying measures for the institutional, financial, organizational and technical strengthening of the municipal and regency departments dealing with solid waste management will be provided by the Swiss State Secretariat for Economic Affairs (SECO) through an additional grant funding. "This investment will contribute to the Indonesian Government`s target to reduce greenhouse gas emissions", said Dr. Schr�der. A modern infrastructure for hygienic and environmentally safe disposal of solid waste is necessary in fast-growing urban areas such as Indonesian cities. Solid waste management in Indonesia is the country`s third largest source of greenhouse gas emissions. As such the new solid waste disposal systems, which are part of the Emission Reduction in Cities program, will make an important contribution to reducing the environmental burden in Indonesia.