Development partnership with Indonesia
To support climate-resilient communities in Indonesia, our development partnership will focus on outcomes that ensure:
- climate adaptation and resilience is strengthened, including at the community level, and through climate resilient infrastructure
- Indonesia's clean energy transition and economic decarbonisation is supported in line with Indonesia's medium-term targets and long-term goals
The Australia-Indonesia Climate and Infrastructure Partnership is the centrepiece of our support for Indonesia's energy transition and will deploy blended finance mechanisms to crowd-in private sector finance and provide technical assistance.
Climate risks will be considered across the entirety of the development partnership so that we can meet the targets set out in Australia's International Development Policy. Disaster preparedness activities will support government and communities in effectively mitigating and responding to, climate-related disasters.
We will work to ensure our climate, gender equality, disability equity and social inclusion objectives go hand-in-hand, including through expanding government partnerships and social inclusion initiatives aimed at ensuring women, people with disabilities and vulnerable groups benefit from Indonesia's clean energy transition.
We will identify opportunities to work with other development partners, including multilateral banks and UN agencies to support Indonesia's climate finance and energy transition needs.
Australia-Indonesia Climate and Infrastructure Partnership (KINETIK)
$200 million, 2022-2027
Australia is investing $200 million over five years to partner with Indonesia to promote a just energy transition in which women, people with disabilities and the marginalised participate in and benefit from the shift to net zero.
Our support aims to deepen cooperation on reducing emissions and promoting clean energy systems and industries through:
- $50 million to unlock investment into climate and clean energy-focused Indonesian small and medium-sized enterprises through Australian Development Investments (ADI);
- $50 million to attract investment in green infrastructure by helping Indonesia de-risk and secure private sector financing for high-potential projects through the Private Infrastructure Development Group (PIDG);
- $100 million to support Indonesia's sustainable finance and just energy transition agenda, through technical assistance, government partnerships, Australia Awards short courses and through building a coalition of Indonesian leaders to take forward the inclusive and just clean energy transition;
- establishing a bilateral mechanism to advance collaboration on the electric vehicle (EV) ecosystem.
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Synergies and Collaboration for Service Delivery Acceleration (SKALA)
$160 million, 2022-2030
The goal of SKALA is to help reduce poverty and inequality within Indonesia by improving basic service provision to poor and vulnerable communities in less developed regions. SKALA will do so through working with stakeholders at the national and local levels to strengthen Indonesia's decentralised governance.
Related document
| Name of document | Year published | Type |
|---|---|---|
| SKALA Investment Design Document | 2021 | Design |
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Australia-Indonesia Knowledge Partnerships Platform (KONEKSI)
$65 million, 2022-2027
KONEKSI is Australia's flagship program in the knowledge and innovation sector in Indonesia. KONEKSI's goal is to build enduring partnerships between Indonesia and Australian knowledge institutions to advance Indonesia’s equitable and sustainable development. KONEKSI fosters engagement between Australian and Indonesian institutions such as universities, CSOs, think tanks, governments and private sector to co-design innovative policies and new technological solutions in areas of mutual interest such as climate change, digital transformation and food security.
Related document
| Name of document | Year published | Type |
|---|---|---|
| KONEKSI Design Document | 2022 | Design |
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Australia-Indonesia Partnership for Disaster Risk Management (Siap Siaga)
$64 million, 2019-2024
The Australia Indonesia Partnership for Disaster Risk Management (Siap Siaga) aims to strengthen Indonesia's disaster risk management (DRM) capabilities and enable Australia and Indonesia to partner with third countries on DRM in line with the Memorandum of Understanding on Trilateral Cooperation with Pacific Island Countries.
Related documents
Related links
Siap Siaga – Australia-Indonesia Partnership on Disaster Risk Management
Palembang City Sewerage Project (PCSP)
$45 million, 2017 – 2026
The Palembang City Sanitation Project is upgrading the sanitation system in Palembang City, South Sumatra Province, Indonesia. It is co-financed by the Australian and the Indonesian governments. The project is trialing an effective model to finance, build and manage municipal infrastructure in Indonesia's three levels of government. It is hoped that this approach will increase local government ownership and contribute to more enduring and better maintained infrastructure.
Related document
| Name of document | Year published | Type |
|---|---|---|
| PCSP design document | 2017 | Design document |
Related links
Additional information regarding the MSMIP and PCSP can be found on the Asian Development Bank and KIAT websites.
Asian Development Bank Sustainable Infrastructure Assistance Program II (SIAP 2)
$40 million, 2019 – 2025
Australia has partnered with the Asian Development Bank (ADB) to deliver high quality infrastructure technical advice and loan preparation since 2013 through the Sustainable Infrastructure Assistance Program (SIAP) trust fund.
Related documents
| Name of document | Year published | Type |
|---|---|---|
| 2024 | Review and management response |
Related link
ADB Sustainable Infrastructure Assistance Program Documents
Poverty Alleviation & Comprehensive Inclusive & Adaptive Social Protection (PROAKTIF)
$30 million, 2023-2025
The Poverty Alleviation and Comprehensive, Inclusive and Adaptive Social Protection program (PROAKTIF) is a partnership between Australia and Indonesia to strengthen Indonesia's social protection system and poverty alleviation programs. PROAKTIF is a successor program to MAHKOTA and continues Australia and Indonesia’s joint goals of addressing poverty and inequality, reduce barriers to inclusive economic growth and maintain stability.
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Australia-UNICEF Rural and Remote Education Initiative for Papua Provinces (UNICEF-Papua) - Phase 3
$10.5 million, 2021-2027
The Rural and Remote Education Initiative for Papua Provinces Phase 3 focuses on improving literacy outcomes of children in the Papua provinces. This includes working with teachers and principals to improve the quality of teaching, supporting district governments to improve literacy in schools, and assisting decision makers to use evidence to improve education quality and address teacher absenteeism.
Related documents
| Name of document | Year published | Type |
|---|---|---|
| Baseline Study | 2015 | Research Paper |
| Midline Study | 2017 | Research Paper |
| Independent Strategic Review of INOVASI Phase 2 and UNICEF Papua Phase 3 Programs in Indonesia and Management Response | 2023 | Strategic review and management response |
Supporting Climate Change Integration and Environmental Sustainability in Indonesia
$2.6 million, 2023-2026
This investment supports Australia's climate change and sustainability mainstreaming objective across the Indonesia bilateral development partnership including through building DFAT's climate change capability.