JAKARTA - The Canadian bilateral development financing institution, FinDev Canada, announced the signing of a loan facility of 30 million US dollars to PT Indonesia Infrastructure Finance (IIF) at the Canada-in-Asia Conference (CIAC) held in Singapore by the Asia Pacific Foundation of Canada.
This loan aims to strengthen low-carbon economic growth in Indonesia through the financing of sustainable infrastructure projects. Through this transaction, FinDev Canada officially entered the Indonesian market, marking its first investment in the country.
The loan facility will increase access to financing for renewable energy projects that contribute to climate change mitigation efforts, while strengthening the capacity and resilience of national infrastructure.
Indonesia is currently undergoing an energy transition process to balance the increase in energy needs with national climate targets. The government has set a target of 31 percent renewable energy mix by 2050 as part of efforts to build long-term economic resilience.
Indonesia is also facing increasing climate risks, such as floods, droughts, and sea level rise. In response, Indonesia is committed to diversifying the energy mix and achieving a net-zero emission target by 2060, stressing the importance of investing in low-carbon and climate-resilient infrastructure.
As an infrastructure financing institution, IIF has a strategic role in the development of the Indonesian infrastructure sector through financing and advisory services. By utilizing expertise and in-depth understanding of domestic conditions, this commitment from FinDev Canada is a continuation of the memorandum of understanding that was signed in 2025.
This cooperation also strengthens the bilateral agenda between Canada and Indonesia through support for priority infrastructure projects that encourage trade, create economic opportunities, and advance sustainable development.
The CIAC event itself also featured more than 700 senior policymakers, business leaders, investors, and a number of experts from Canada and the Asia Pacific region.
"Indonesia, as Canada's largest export market in the ASEAN region, is a strategic opportunity for sustainable development. Through our partnership with Indonesia Infrastructure Finance, one of the main players in sustainable infrastructure, we can strengthen the development of renewable energy and support shared prosperity in the Indo-Pacific region," said Paulo Martelli, Vice President and Chief Investment Officer FinDev Canada.
Meanwhile, President Director/CEO IIF, Rizki Pribadi Hasan, said that this financing strengthens the company's capacity to support Indonesia's energy transition and the development of resilient infrastructure against climate change.
"Through a partnership with FinDev Canada, we can expand access to long-term financing for renewable energy projects and sustainable infrastructure that is in line with Indonesia's low-carbon growth agenda. We also appreciate the trust given and hope to continue to deepen this collaboration to bring about real social and environmental impact," he said in a written statement, Thursday, February 12.
For 16 years, IIF has carried out its mandate as a key catalyst in infrastructure development in Indonesia.
Through financing various strategic infrastructure in various sectors, IIF has contributed significantly to increasing national sustainability and connectivity. IIF supports the development of renewable energy with a capacity of around 709.9 MW which is able to supply electricity to more than 709,900 households, as well as potentially reducing around 4.92 million tons of CO₂ emissions per year. In addition, IIF also expands access to clean water for around 7.2 million people.
Meanwhile, in the health sector, IIF supports the construction of facilities with more than 1,000 hospital beds that serve hundreds of thousands of patients every year in various regions of Indonesia, to improve people's welfare.
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