The UK and Indonesia have launched a new sustainable infrastructure partnership, aiming to boost British business and support Indonesia’s net zero goals.
UK and Indonesia Strengthen Ties with New Infrastructure Initiative
On January 20, 2025, Minister for the Indo-Pacific Catherine West announced a new UK-Indonesia sustainable infrastructure partnership during her visit to Jakarta.
This initiative is part of a broader effort to deepen the UK-Indonesia Strategic Partnership, which is set to be formalized in 2025 by Prime Minister Keir Starmer and President Prabowo Subianto.
Opportunities for UK Firms and Environmental Best Practices
The partnership will create new opportunities for leading British engineering firms such as Arup, Mott McDonald, and PwC to design and deliver projects in Indonesia.
This collaboration will not only enhance British business but also ensure that new projects incorporate environmental best practices to help decarbonize the sector.
Infrastructure is estimated to account for around 40% of global emissions, according to the World Economic Forum.
Economic and Environmental Impact
The initiative aligns with the UK government’s commitment to restore global leadership on climate issues. It will support Indonesia’s target of 8 percent annual growth while focusing on secure and sustainable economic growth.
The partnership also includes the launch of new programmes such as the Blue Planet Fund and the Climate and Ocean Adaptation and Sustainable Transition (COAST) Programme, which will protect coastal environments and reduce poverty.
Some Statistics
- £26 million in technical and development assistance through the UK’s Future Cities Infrastructure Programme (FCIP) and the Green Cities and Infrastructure Programme (GCIP).
- £18 million in project funding for the COAST Programme to protect ocean habitats and resources.
- Infrastructure estimated to account for around 40% of global emissions.
Leadership Response
The UK and Indonesia are proving that strong economic growth does not need to come with higher emissions. Investing in green infrastructure and the energy transition is not just vital for our planet – it will make sure our economies are fit for the future.
Catherine West, Minister for the Indo-Pacific
This statement underscores the mutual commitment to sustainable development and economic growth without compromising environmental goals.
Progress and Targets
- The partnership will increase cooperation across four areas: policy and regulatory development, project development and delivery, finance and investment mobilisation, and collaboration and partnership.
- The UK-Indonesia Just Energy Transition Partnership will continue to be a focal point during Minister West’s visit.
- A Memorandum of Understanding (MoU) with Minister for Digital Communications Meutya Hafid will be agreed upon to enhance cooperation on emerging technologies and AI.
Local and Regional Impact
The initiative builds on previous successes, such as Mott McDonald and Crossrail International’s support for the design and delivery of Jakarta’s Mass Rapid Transit and Light Rapid Transit railway systems.
Minister West will also visit Timor-Leste to see UK health and education development partnerships in action, reaffirming UK support for the country’s application to join ASEAN.
Immediate Implications
The new partnership marks a significant step in the UK’s engagement with the Indo-Pacific region, emphasizing the importance of sustainable development and economic cooperation.
This initiative will not only benefit British firms but also contribute to Indonesia’s environmental and economic goals.
Broader Significance
This collaboration reflects the UK’s broader strategy to enhance its presence in the Indo-Pacific, focusing on climate, technology, health, and education. Moreover, it paves the way for future international collaborations aimed at achieving sustainable growth and environmental protection.
Notably, this partnership aligns with the UK’s commitment to global leadership on climate issues, thereby reinforcing its position as a champion of environmental sustainability.
Furthermore, by setting a precedent for future collaborations, this partnership demonstrates the UK’s dedication to fostering a more sustainable and environmentally conscious world.
