Germany Commits €262.82 Million for Green Goals in Surabaya

 

Wednesday, 09 September 2026

 

Germany is strengthening its cooperation with Indonesia in sustainable development, and Surabaya is one of the cities getting attention. Germany committed 262.82 million euros to support Indonesia’s green development goals.

 

A major part of the funding is connected to sustainable public transportation in Surabaya. For a growing city, transportation is an important issue because traffic congestion and private vehicle use can contribute to air pollution and greenhouse gas emissions.

 

Under the cooperation, Germany will provide 250 million euros as a subsidized loan and another 5 million euros as a grant for the development of an environmentally friendly Bus Rapid Transit, or BRT, system in Surabaya.

 

The idea is quite simple: make public transportation more attractive and efficient so more people can choose buses instead of using private vehicles every day.

 

Building Greener Public Transportation

 

Surabaya is one of Indonesia’s major urban centers, so improving public transportation can have a big impact. The planned BRT project is expected to help reduce traffic congestion while encouraging residents to use public transportation.

 

Germany’s development bank, KfW, will provide financing as well as technical expertise for the project. This means the cooperation is not only about providing money. Technical support is also an important part of making the project work effectively.

 

The Surabaya BRT project is also connected to the Green Infrastructure Initiative, a cooperation program between Indonesia and Germany that supports efforts to reduce greenhouse gas emissions and develop environmentally friendly urban infrastructure.

 

Supporting Indonesia’s Green Finance

 

The cooperation goes beyond transportation. Germany is also supporting Indonesia’s green financial market.

 

A grant of 7.28 million euros has been allocated to help develop Indonesia’s green bond market. The goal is to increase the volume and quality of green bonds while improving the capabilities of issuers and government institutions.

 

Green bonds are becoming increasingly important because they can help raise funding for projects that have environmental benefits. This can include clean transportation, renewable energy, energy efficiency, and other sustainable infrastructure projects.

 

Part of a Bigger Partnership

 

The German funding is also connected to Indonesia’s wider climate agenda, including the energy transition through the Just Energy Transition Partnership, or JETP.

 

Indonesia and Germany have actually been cooperating since 1958, with their partnership covering several areas of development. In recent years, energy, sustainable urban development, public transportation, forest management, and conservation have become important areas of cooperation.

 

For Surabaya, the planned green transportation investment could become an important step toward a cleaner urban future. Better public transport can help residents move around the city while reducing dependence on private vehicles.

 

More broadly, the cooperation shows how international partnerships can support Indonesia’s transition toward greener infrastructure. Germany’s commitment is therefore not simply an investment in buses or transportation. It is part of a wider effort to build cities, financial systems, and infrastructure that are better prepared for a more sustainable future.