KfW Development Bank is a central pillar of Germany’s development cooperation, operating under the guidance of the Federal Ministry for Economic Cooperation and Development (BMZ). It provides financial support to developing and emerging countries to foster sustainable economic, social, and environmental development. As part of the KfW Group, the bank implements Germany’s development policy through concessional loans, grants, and promotional instruments, addressing global challenges such as climate change, poverty reduction, and infrastructure development. With decades of experience, KfW manages a portfolio worth over €80 billion, spanning sectors including renewable energy, education, healthcare, and governance. Its approach emphasises long-term partnerships, ownership by partner countries, and alignment with international frameworks such as the Agenda 2030 and the Paris Agreement.

In Indonesia, KfW Development Bank plays a critical role in advancing the country’s energy transition by financing large-scale investments in sustainable and low-emission energy systems. In collaboration with the Government of Indonesia and local stakeholders, KfW supports the development of renewable energy sources, particularly geothermal, hydropower, and solar energy, to reduce reliance on fossil fuels and lower greenhouse gas emissions. These efforts align with Indonesia’s Nationally Determined Contributions (NDCs) and long-term decarbonization goals. KfW also promotes energy efficiency, funds improvements in electricity transmission and distribution infrastructure, and facilitates regulatory reforms and technical innovations to foster an enabling environment for clean energy development. Through its targeted support in the energy sector, KfW significantly contributes to Indonesia’s ambition to build a resilient, inclusive, and low-carbon energy future, while reinforcing global commitments to sustainable development and climate action.