The partnership between Indonesia and the World Bank Group has evolved over six decades to become one of our 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 emerging status as a middle-income country.
To remain relevant and responsive to the needs of Indonesia, the Bank Group will continue to call on a broad range of instruments and knowledge services to respond to the challenges of each of the areas in which we engage.
At the end of 2012, the World Bank Group approved the new Country Partnership Strategy for Indonesia. This strategy, developed in consultation with various stakeholders, is governing the World Bank Group’s program from fiscal years 2013 to 2015. The new strategy is aligned with the country's Master Plan for "Acceleration and Expansion of Indonesia's Economic Development 2011-2025" and will focus on four main areas of engagement:
• Pro-Growth: by providing support to increase connectivity and logistics performance, improve the regulatory environment for competition and innovation, maintain financial sector stability and enhancing access to credit,boost the quantity and efficiency of infrastructure investment, and improve the quality of public spending and financial management at the national and local levels.
• Pro-Jobs: by improving the overall governance and management of the education system, through improving the quality and performance of teachers, enhancing human resource capacity in Research &Development, and facilitating the institutional transformation required to implementation reform of social insurance.
• Pro-Poor: by providing support to the national targeting system in order to better reach poor and vulnerable households, to enhance the design and performance of the Government's community development programs, to the promotion of agricultural revitalization, and to the improvement of health and nutrition outcomes, particularly of the poor, by supporting improved access to quality health care, including maternal and child health services and enhanced HIV/AIDS surveillance, as well as to increased access to safe water and sanitation.
• Pro-Green: byhelping to enable the implementation of Indonesia's REDD+ Strategy, the protection of coral and marine resources, and the scaling up disaster and climate risk reduction and adaptation measures. Support would be provided through knowledge services and mainly grant financing, along with IFC investments.
In addition to the four main engagement areas, the World Bank Group will also engage in two cross-cutting issues, that is, gender, as well as governance and anti-corruption.
World Bank’s lending portfolio in Indonesia consisted of 70 active projects as of April 2013, with a total commitment of worth $7.612 billion, and made for community empowerment, government administration, infrastructure, energy, and rural development.
Engagement of the World Bank Group
International Finance Corporation (IFC), a member of the World Bank Group, made investments of close to $300 million in eight projects and spent almost $7 million on advisory projects in Indonesia during fiscal year 2012 (July 2011 – June 2012), expanding access to financial services for millions of Indonesians, developing vital infrastructure, improving corporate practices, and fighting climate change. Our work has achieved tremendous results. In Indonesia, we have committed to improving access to finance for 1.6 million people and 5,000 small and medium enterprises, and to increase access to infrastructure for more than 8.5 million people. Through our work advising the Indonesian agribusiness sector, IFC helped improve the productivity of more than 11,000 smallholder farmers. This increased their yearly income by more than 9 million dollars in total – that’s 800 dollars for each farm each year. IFC has an outstanding portfolio of about $1.2 billion of investments of which about $900 million are IFC’s own account