Jambi City Indonesia Pursues Green Urban Transport Project to Cut Mobility Costs

Jambi City in Sumatra, Indonesia is seeking Gap Fund technical assistance for a Green Urban Transportation project aimed at reducing the city's transportation cost burden, which currently consumes 25.23 percent of the minimum wage against a World Bank recommendation of no more than 10 percent. The project targets enhanced public transport capacity, pedestrian infrastructure and bicycle lanes to reduce private vehicle use, emissions and road congestion.

The Green Urban Transportation Project requires technical assistance for comprehensive planning document studies, stakeholder consultations and support in accessing international financing. Key barriers to project preparation include limited staff expertise in large-scale project planning, difficulty accessing national and international funding, and staff turnover disrupting project continuity. A legal issue concerning approvals from Indonesia's Ministry of Finance and National Development Agency may arise as the project advances, requiring navigation of national-level regulatory processes before international climate finance can be mobilised.

Jambi City's transportation cost ratio of 25.23 percent of the minimum wage is more than double the World Bank's recommended ceiling, placing significant financial pressure on residents in a city of 627,800 people. The project is aligned with Jambi's Transportation Masterplan 2022-2042 and has the full backing of the mayor, who has promoted it at national and international forums. By encouraging a shift from private vehicles to public transport and active mobility, the project aims to reduce traffic congestion, traffic accidents, air and noise pollution, and transport-sector greenhouse gas emissions in the provincial capital of Jambi.

The city requires technical assistance to advance the project's planning documentation to the standard needed for approval from national authorities and to mobilise resources from potential foreign partners. Jambi City recommends that other cities actively join regional and international climate initiatives to expand their networks and access funding sources including governmental agencies, non-profit organisations and private sector partners. The case study is part of CDP and the Global Covenant of Mayors' effort to strengthen the Asian city climate project pipeline and connect local climate projects with project preparation facilities and technical assistance.

Key figure — 25.23% — Jambi City's transportation cost as a share of minimum wage, versus the 10% World Bank recommendation