Sustainable Urbanization Indonesia IDSUN, Phase II

The IDSUN Trust Fund supports the Government of Indonesia and its cities to address the challenges of sustainable urbanization. It entails technical assistance and capacity building to meet pressing needs in urban management and planning, municipal infrastructure financing, and sectoral investments on urban mobility, urban resilience and water.

Pays/région Période Budget
01.04.2022 - 31.12.2026
CHF  8’392’500

Indonesia is comparatively benefitting less from the potential positive returns to urbanization in terms of growth of Gross Domestic Product and poverty reduction. One main reason for this is the significant infrastructure backlog in Indonesia, resulting in limited access for the people and the economy in cities to reliable public services. Local governments in secondary cities lack the capacity to plan, prepare and finance strategic infrastructure investments in key sectors, and keep pace with the high demand for urban services.


The Trust Fund aims to enable Indonesian cities to conduct evidence-based multisectoral urban planning, and develop appropriate financing solutions for urban investments in key sectors. Technical assistance and capacity building activities develop a suite of policy, advisory, and financing solutions that support sustainable urbanization.

Effets à moyen terme

Additional cities have access to geospatial data for planning and analytics to inform policies and investments. Approaches on area-based development and metropolitan planning are tested and introduced.

Access for local governments to national debt financing and economically viable multi-year infrastructure investments is enhanced.

Flood resilience in cities is strengthened through holistic "Sponge city" investment plans, ready for implementation through financing from the national resilience program.

Urban water utilities have better access to finance for measures to improve their performance ratings and safe drinking water provision.

Upcoming mass transit systems are improved through innovative pilots, access to new financial mechanisms, gender equity concepts and a better vertical coordination in the sector.

Exchange of ideas, experience and best practice on urban development between stakeholders in Indonesia is improved, stimulating innovation and learning process.


Principaux résultats attendus:  

5 new cities use data-driven tools for urban growth diagnostics- Area-based integrated urban regeneration pilots are successfully developed in 3 cities.

3 diagnostics focusing on flood resilience are completed and used for investment plans for a sponge city approach with financing from the national resilience program.

The urban infrastructure financing roadmap and additional financing instruments are available. Cities in preparation of a municipal bond issuance have a pipeline of investment projects.

4 mass transit pilot initiatives developed. National Urban Mobility Policy is drafted and process for vertical coordination in the sector defined.

5 water utilities selected by a smart selection criteria, have improved performance ratings by accessing new financing. 2 cities have completed strategies for integrated urban water management.

5 knowledge sharing events are conducted and at least 4 knowledge products are developed in response to government requests.

Principaux résultats antérieurs:  

Since its inception in 2016, the first phase of the IDSUN Trust Fund has delivered significant results across its components and was rated satisfactory by external evaluators. It has successfully introduced a system for evidence-driven urban planning, and enhanced the access of subnational governments to debt financing for multi-year infrastructure investments. A total of US$ 354.2 million infrastructure loan investments were leveraged by IDSUN. It successfully developed sector specific urban framework programs to channel funding and technical assistance for urban mobility, urban resilience and urban water to subnational governments. Finally, research and knowledge exchange have successfully supported reform processes and policy development on urban development in Indonesia.

Direction/office fédéral responsable SECO
Budget Phase en cours Budget de la Suisse CHF    8’392’500 Budget suisse déjà attribué CHF    0 Budget y compris partenaires de projet CHF    11’518’750
Phases du projet Phase 2 01.04.2022 - 31.12.2026   (Phase en cours) Phase 1 11.05.2016 - 31.12.2022   (Completed)