Germany supports Indonesia in its efforts to harmonize economic development with the protection of the climate and natural resources. In the focal area “Climate Protection” the cooperation is oriented on national, regional and sectorial climate action plans.

KfW finances activities of the national power company PLN (Persero) to expand renewable energies to meet the increasing power demand of the country. Among others, the provision is made for the rehabilitation and expansion of the Hydropower Plant Bakaru in South Sulawesi (project denominated “Bakaru II”). The specific problem of heavy sedimentation volume in the Mamasa River - for which the causes are assumed to derive from upstream land-use practices - requires adequate upstream measures.

Mamasa, one of the poorest districts on the island of Sulawesi, is the primary focus of the project. The proposed project area has development potential, which is still dormant or underexplored—namely, forest production and small and medium timber industries, coffee-, cocoa-, fruits- and vegetable growing, non-timber forest products and eco-tourism.

The Feasibility Study aims at designing a feasible project, focussing on integrated watershed management and reforestation activities, expected to contribute to a reduction of erosion and release of sediments that are depositing in the reservoirs of the existing Bakaru Dam I and the planned Bakura Dam II.