The largest economy in Southeast Asia, Indonesia – a diverse archipelago nation of more than 300 ethnic groups -- has charted impressive economic growth since overcoming the Asian financial crisis of the late 1990s. The country’s GDP per capita has steadily risen, from $857 in the year 2000 to $3,847 in 2017. Today, Indonesia is the world’s fourth most populous nation, the world’s 10th largest economy in terms of purchasing power parity, and a member of the G-20. An emerging middle-income country, Indonesia has made enormous gains in poverty reduction, cutting the poverty rate to more than half since 1999, to 9.8% in 2018.

    Indonesia’s economic planning follows a 20-year development plan, spanning from 2005 to 2025. It is segmented into 5-year medium-term plans, called the RPJMN (Rencana Pembangunan Jangka Menengah Nasional) each with different development priorities. The current medium-term development plan – the third phase of the long-term plan – runs from 2015 to 2020. It focuses on, among others, infrastructure development and social assistance programs related to education and health-care. Such shifts in public spending has been enabled by the reform of long-standing energy subsidies, allowing for more investments in programs that directly impact the poor and near-poor.

    Considerable challenges remain in achieving Indonesia’s goals.

    Out of a population of around 260 million, more than 25.9 million Indonesians still live below the poverty line. Based on March 2017 data, approximately 20.78% of the entire population remain vulnerable of falling into poverty, as their income hover marginally above the national poverty line.

    While there are greater efforts at improving basic public services, the quality of health clinics and schools is uneven by middle income standards, contributing to alarming indicators, particularly in health.

    For example, the maternal mortality rate in Indonesia is 126 maternal deaths per 100,000 live births – higher than the Millennium Development Goal of 102 maternal deaths per 100,000 live births. Approximately 1 in 3 children under the age of 5 suffer from stunting, or shorter height, which reflects impaired brain development that will affect the children’s future opportunities. If not reversed, the gap between rich and poor, already increasing in recent years, may widen.

    To strengthen the country’s investment climate and economic growth, the government continues to announce policy reforms intended to cut red-tape. Investors welcome the policy reforms, which include opening sectors for investment and reducing high logistics costs.


    Last Updated: Sep 25, 2018


    The partnership between Indonesia and the World Bank Group has evolved over six decades to become one of the Bank Group’s most significant in terms of lending, knowledge services and implementation support. Since 2004, World Bank support for Indonesia has moved towards supporting a country-led and owned policy agenda, consistent with Indonesia’s status as a middle-income country.

    To remain responsive to the needs of Indonesia, the Bank Group continues to call on a broad range of instruments and knowledge services.

    In December 2015, after broad consultations with government, civil society, and the private sector, the Board approved the 2016-2020 Country Partnership Framework (CPF) for Indonesia, aligned with the priorities of Indonesia’s medium-term development plan, the RPJMN.

    As of August 2018, IBRD lending and the IFC (International Finance Corporation) would deliver $8.5 billion in equity, loans, guarantees, and mobilization.

    Last Updated: Sep 25, 2018

  • In 2011, The World Bank supported the development of two geothermal fields: Ulubelu in Lampung at the southern part of the Sumatra Island (capacity 110 MW), and Lahendong in North Sulawesi (capacity 40 MW). More recently, in 2017, the World Bank provided grants to support the Geothermal Energy Upstream Development Project, to support government sponsored exploration drilling and facilitate investment in geothermal power generation. The Government of Indonesia is planning a new Geothermal Resource Risk Mitigation Facility, to unlock investments through risk mitigation for exploration and early production drilling by providing exploration funding to geothermal developers. This would allow investors to prove sufficient resources to attract commercial finance for large-scale development. It is expected that the facility will lead to the development of more than 600 MW of new geothermal capacity.

    Promoting human capital is an important agenda for Indonesia, and the Bank is helping improve education quality in rural and remote areas. The KIAT Guru program is empowering community participation and tying allowance payment to improve teachers’ performance. The program has been implemented in over 200 schools and community satisfaction on teacher presence has improved from 68% in to 90%, and teacher service performance from 55% to 91%.

    Recognizing the importance of helping those in need to help themselves, the World Bank supports the government’s Family Hope Program, which strives to end the cycle of poverty among Indonesia’s poorest. Family development sessions and learning materials jointly developed with World Bank assistance are included in the program, to help mothers have a better understanding of health and nutrition, good parenting practices, child protection and financial management. The program is currently assisting 3.5 million families improve the education and health outcomes of their children, and the government plans to expand the program to reach 10 million families in 2020.

    The World Bank’s flagship programs address urgent needs facing Indonesia. The Generasi program provides incentivized block grants to communities to address three lagging Millennium Development Goals: maternal health, child health, and universal education. Generasi is currently active in 5,488 villages throughout 11 provinces, reaching nearly 5 million people. Some of the program’s results include helping hundreds of thousands of children receive immunizations, addressing malnutrition, and ensuring that nearly 1 million pregnant women receive iron supplements.

    The World Bank is also supporting the government’s program, PAMSIMAS, to provide clean water and sanitation services. Active across 32 provinces, PAMSIMAS is a collaboration between local governments and communities, and widely considered to be the most cost-effective option for scaling up water and sanitation services. Over the next few years, PAMSIMAS will expand to serve 26,000 villages in around 403 districts.

    Today, Indonesia is comprised of more than 500 autonomous local governments that have the potential to accelerate growth in the districts. The Local Government Decentralized Project works with local governments in ensuring that the transfers allocated by the central government for infrastructure investments are well spent, with improvements in transparency and accountability. Strong government buy-in has followed, and the output-verification approach is now being scaled up to 30 provinces nationwide, with an expected 450 districts participating by 2018.


    Last Updated: Sep 25, 2018


Indonesia: Commitments by Fiscal Year (in millions of dollars)*

*Amounts include IBRD and IDA commitments


More Photos Arrow

In Depth


Partners Through Time

Explore the Indonesia-World Bank partnership in this interactive timeline.


Indonesia Economic Quarterly Updates

Indonesia’s economy remains positive and future potential is even greater, but ongoing challenges and risks remain.


Stunting Prevention

Indonesia aiming to give all children best start in life by addressing stunting.


Disaster Management

Safeguarding Indonesia’s development from increasing disaster risks.


Project Map

Take a closer look at where our projects are located in Indonesia

Results Profiles

Take a look at what results the World Bank projects have achieved in Indonesia.

Open Data

The World Bank provides free and open access to a comprehensive set of data about development in countries around the globe, including Indonesia.


The Indonesia Database for Policy and Economic Research has sub-national data for almost 200 development indicators.

Additional Resources

Country Office Contacts

Jakarta, (+62-21) 5299-3000
Indonesia Stock Exchange Building, Tower 2, 12th Floor. Jl. Jenderal Sudirman Kav 52-53, Jakarta 12190
Washington, +1-202-473-4709
1818 H Street, N.W, Washington, DC 20433