Global Gateway
Global Gateway is the European strategy to boost smart, clean and secure connections in digital, energy and transport sectors, and to strengthen health, education and research systems across the world. Through a 'Team Europe approach', Global Gateway brings together the EU, its Member States and their financial and development institutions to mobilise the private sector to leverage investments promoting sustainable growth.
Between 2021 and 2027, Team Europe is mobilising up to €300 billion of investments for sustainable, transformational and high-quality projects, taking into account the needs of partner countries and ensuring lasting benefits for local communities. This allows EU’s partners to create resilient and sustainable societies and economies, but also create opportunities for the EU Member States’ private sector to invest and remain competitive, whilst ensuring the highest environmental and labour standards, as well as sound financial management.
Global Gateway offer in Indonesia
Indonesia is a pivotal partner for the EU thanks to its strategic location, dynamic economy, and vast potential for sustainable development. As the world’s fourth-most populous country and a key player in ASEAN, Indonesia serves as a hub for regional connectivity and economic integration, aligning with the Global Gateway’s mission to promote sustainable, inclusive, and resilient global partnerships. This relationship is further underscored by trade and investment ties, with the EU as Indonesia's fifth-largest trading partner and one of its leading sources of foreign direct investment, reflecting a shared commitment to fostering sustainable economic growth. These efforts focus on critical areas such as the green energy transition, digital transformation, and equitable economic growth, fostering impactful collaborations that support Indonesia’s Emas 2045 vision and its commitment to achieving net-zero emissions by 2060.
Central to this partnership is the Global Gateway framework, which channels quality infrastructure investments rooted in sustainability, good governance, and long-term impact. Through a Team Europe approach, bringing together the EU, EIB and EU Member States with their financial and development institutions like KfW of Germany and AFD of France, Team Europe works closely together to ensure enhanced coordination and dialogue as well as partnerships in many of the projects funded. Cooperation with Indonesia on investments include blended finance projects and the recent roll out of guarantee schemes planned in sectors such as energy transition, infrastructure, and nature-based solutions like carbon sinks. Additionally, regulatory cooperation on carbon markets and sustainable finance policies offers opportunities to enhance Indonesia’s investment environment, attract responsible investments aligned with global sustainability goals and reduced greenhouse gas emission.
Blended finance (EU grants blended with loans or equity from public and private financiers) is a key tool of EU-Indonesia investment cooperation. Blended projects combine various modalities such as technical assistance, capacity building, investment grants and loans implemented by EU development financial institutions. The establishment of the European Investment Bank (EIB) Global regional office in September 2022 is another key development to mobilise EU investments in Indonesia. In February 2024, EIB Global signed a memorandum of understanding (MoU) with PT SMI, which established the parties’ commitment to accelerate sustainable infrastructure development in Indonesia, including to facilitate a sustainable energy shift in the country in line with the Just Energy Transition Partnership (JETP). The JETP is one of the three flagship initiatives of Team Europe support to Indonesia under the Global Gateway. The EU – with the European Investment Bank and four EU Member States – are the largest pledger under the JETP, with €3.6 billion committed (as of November 2024), mostly in the form of concessional loans and grants.
The other two Global Gateway flagship initiatives in Indonesia further highlight the depth of Team Europe-Indonesia cooperation. The Regional Railway Surabaya led by Germany, focuses on enhancing Indonesia’s rail connectivity and promoting sustainable urban transportation. Meanwhile, the Smart City Connectivity in Nusantara, led by Finland, pioneers next-generation services by integrating cutting-edge digital infrastructure, smart urban solutions, and robust data governance to deliver efficient and sustainable city services. These flagship projects demonstrate the Global Gateway’s comprehensive approach to supporting Indonesia’s green transition, digital transformation, and sustainable economic growth.
The EU blended finance portfolio in Indonesia comprises six projects, with a cumulative EU grant contribution of nearly €60 million expected to mobilise close to €6 billion of total investments. The most recent additions to this blending portfolio include the Sustainable Ocean Management project, which combines an infrastructure component (the upgrade of fishing ports) with environmental sustainability measures and research along the fish products value chain, as well as the Indonesia Energy Transition Facility (IETF). The latter provides strategic support to advance Indonesia's energy transition agenda through policy reforms in areas such as bioenergy, small islands' decarbonisation, green hydrogen and ESG frameworks. It also strengthens the capacity of energy SOEs and facilitates the preparation of renewable energy projects including wind and geothermal. IETF fully contributes to the Global Gateway flagship JETP.
In addition to bilateral projects, Indonesia benefits from global and regional blended finance facilities funded by the EU. An important example is the ASEAN Catalytic Green Finance Facility (ACGF) an initiative managed by the Asian Development Bank (ADB). It aims to support governments in Southeast Asia to prepare and finance infrastructure projects that promote environmental sustainability and contribute to climate change goals. Team Europe’s total contribution which includes France, Germany, Italy, EU and EIB, amounts to €783 million, with €50 million coming from the EU. A first EU investment under the ACGF has been approved for Indonesia’s clean energy transition alongside ADB, AFD and KFW financing. This investment aims to support state electricity company, PLN scale up solar and wind renewable energy projects and enhance grid infrastructure as part of our Global Gateway flagship JETP.
EU cooperation with Indonesia under the Global Gateway also encompasses strategic planning support. For example, in April 2024, the EU supported the Indonesia’s Ministry of Investment (BKPM) in launching an EU Investment Attraction Plan to foster new investments from the EU in “future-oriented” sectors. As a follow-up to this initiative, an “EU Desk” is being established at BKPM to guide and facilitate current and prospective European investors, particularly in sectors related to the green transition and technologies, clean energy, circular economy, sustainable cities, and digitalisation. This desk will play a critical role in identifying investment projects and promoting them in line with the priorities of the Global Gateway, thereby strengthening European investment in Indonesia.
Global Gateway in Indonesia: Project examples
List of EU-funded Projects in Indonesia