The Asian Infrastructure Investment Bank (AIIB) and Germany’s KfW Development Bank have agreed to strengthen their cooperation in support of Indonesia’s Climate Adaptation and Green Resilient Program, Sub-Program 1.
The program supports Indonesia’s efforts to strengthen climate resilience and adaptation while promoting sustainable growth through policy and institutional reforms. These reforms cover climate-smart agriculture, irrigation management, village financing and social forestry; mangrove protection, environmental management and ecosystem services; and climate-resilient subnational financing, solid waste management and water supply.
Ludger Schuknecht, AIIB Vice President for Policy and Strategy, and Brigitte Réthier, Member of the Executive Board of KfW, signed a memorandum of understanding on the sidelines of the 2026 IMF and World Bank Group Annual Meetings in Bangkok. It provides a framework for both institutions to coordinate their engagement with the Government of Indonesia.
“This partnership brings together the complementary strengths of AIIB and KfW in support of Indonesia’s climate policy reform agenda,” Schuknecht said. “Our financing can help accelerate the implementation of critical reforms and mobilize investment. We also greatly value KfW’s deep country knowledge, longstanding engagement in Indonesia and technical expertise. Together, we can provide coordinated financing, policy dialogue and technical assistance to help Indonesia advance climate resilience and sustainable development.”
“The reforms supported by our two banks will be highly beneficial for Indonesia, particularly in creating an enabling environment for climate-resilient investments and ecosystem protection,” Réthier said. “KfW is pleased to contribute our decade-long experience in forest protection projects in Indonesia. This partnership reflects our responsibility as a bank to address global challenges such as climate change and strengthen international relations.”
The program, known as CARE CPBF, is coordinated by Indonesia’s Ministry of National Development Planning (Bappenas). The Government of Indonesia leads the design and implementation of the reforms, with support from AIIB and KfW through policy dialogue, technical assistance and coordinated financing.
Under CARE CPBF Sub-Program 1, AIIB is providing USD500 million in policy-based financing, while KfW aims to provide EUR300 million.
About AIIB
The Asian Infrastructure Investment Bank is a multilateral development bank dedicated to financing “Infrastructure for Tomorrow,” with sustainability at its core. AIIB began operations in 2016, now has 111 approved members worldwide, is capitalized at USD100 billion, and is AAA-rated by major international credit rating agencies. AIIB collaborates with partners to mobilize capital and invest in infrastructure and other productive sectors that foster sustainable economic development and enhance regional connectivity.
About KfW
KfW Development Bank implements projects in developing countries and emerging economies on behalf of the German Federal Government. Its promotional financing aims to strengthen economic perspectives, improve infrastructure, combat poverty and hunger, protect the climate and the environment, and promote peace and security in the common interest.
