TEMPO.CO, Jakarta - German Ambassador to Indonesia Georg Witschel said his country will invest EUR175 million (US$220 million) in hydro power projects in Indonesia, as reported by Antara News.
"Germany has just committed EUR175 million in the form of a preferential loan for Indonesias sustainable Hydropower Program," Georg stated during a press conference on Thursday.
He added that the embassy sent an official note to the Development Planning Board (Bappenas) regarding the loan on Wednesday, October 29.
An agreement, according to Georg, had been reached during a government to government meeting held in Jakarta on November 14, 2013.
"The aim of the program is to promote the utilization of Indonesias vast hydro energy resources and help the government achieve its goal of improving electricity generation from renewable sources," Georg noted.
The Ambassador remarked that the program also aimed to reduce Indonesias greenhouse gas emissions.
The German party will give the budget to State Electricity Company (PLN) to build hydropower stations.
"It is a direct loan to PLN. I hope the program will start in 2014 since we have sent the note to the Bappenas," Head of the Development Cooperation of German Embassy Ina von Frantzius said.
ANTARA NEWS | INE