The Citarum River is one of the most critical river basins in Indonesia. Located in the province of West Java, the basin extends over 13,000 square kilometers, which provides home and life to over 10 million people. It supplies about 80 percent of metropolitan Jakarta’s water needs, irrigates over 240,000 hectares of rice and other agricultural crops, and is the source of 1,400 MW of hydroelectric power.

Aiming to address the complex challenges in managing the Citarum water resources, the ADB is offering a package of assistance called Integrated Citarum Water Resource Management Investment Project (ICWRMIP). The proposed Program aims to promote integrated water resources and environmental management within the Citarum River basin that will address challenges to water conservation and allocation. ICWRMIP has many sets of projects that cover watershed management, agriculture, water supply and energy.

This is the first ADB investment to Indonesia under the untested new lending instrument called Multitranche Financing Facility (MFF). The Indonesian public will incur a loan worth US$500 million disbursed over 15 years in various tranches.