The European Investment Bank (EIB) is interested in exploring the possibility of investing in the National Capital City (IKN) of the Archipelago. The agency offers cooperation in various sectors from renewable energy to infrastructure. Vice President of EIB, Kris Peeters, said that he had held a meeting with the Minister of Energy and Mineral Resources and the Minister of National Development Planning/Head of Bappenas to discuss opportunities for cooperation. One of the collaborations discussed at the meeting was the development of IKN Nusantara. Peeters said that EIB was not the party that would offer to work on certain projects at IKN Nusantara. However, the EIB opened the door for the Indonesian government to apply for the investment cooperation. "We can't say (to the Indonesian government) we have to do that, or not to do it, then after that we said we would invest. We are very interested in exploring investment in the new nation's capital city. But the Indonesian government must submit to us the details of the project first, so we can say okay (if it is approved)," he said in Jakarta, Tuesday (19/7). He said the EIB had decided to increase its activities and support cooperation between the European Union and Indonesia. The institution has even opened a representative office in Indonesia since 2021. The European Investment Bank opens financing opportunities in alleviating climate, transportation and urban development problems. Currently, the agency is supporting Batam and Makassar to prepare bankable projects through low-carbon energy financing facilities.
Peeters said the EIB is a long-term lending institution owned by the 27 European Union countries. The agency has invested nearly €6.65 billion in Asia between 2012 and 2021. Meanwhile, the EIB has invested in projects around the world totaling €96 billion. The European Investment Bank has been active in Indonesia since 1995 and supports water supply, energy sector, telecommunications projects. Other priorities of the EIB in Indonesia are new and renewable energy, waste management, reducing marine waste and plastic, as well as supporting Indonesia in meeting the Sustainable Development Goals (SDG) agenda. The European Investment Bank is also the EU Climate Bank, which is one of the largest financial institutions in climate action. The agency plans to mobilize €1 trillion by 2030 for climate action in the EU and globally, including Indonesia. The agency plans to dedicate half of its annual financing to climate action by 2025. The EIB is committed to succeeding Europe's plan to become the first carbon-neutral continent by 2025. It will also mobilize an additional EUR 1 billion in financing for a green transition by 2026. Last year, financing The EIB for climate action and environmental sustainability financing reached EUR 27.6 billion or 51% of the total financing.
In 2020, the EIB invested €150 million in the Catalytic Green Finance Facility (ACGF) program conducted by the Association of Southeast Asian Nations (ASEAN). The investment marks the EU Climate Bank's support in building transport, energy, and clean water supply schemes in Southeast Asia. According to data from the Investment Coordinating Board (BKPM), the realization of foreign investment in Indonesia reached US$10.25 billion in the first quarter of 2022. The largest foreign direct investment (PMA) in the first quarter of 2022 went to the basic metal, metal goods, non-machinery and equipment industrial sector, which was US$2.57 billion. This value is equivalent to approximately 25% of the total realization of FDI in that period.
