The World Bank Group (WBG) has renewed its partnership with Indonesia through its new Country Partnership Framework (CPF) for the period of FY2021-FY2025.
While the immediate focus of the Framework would be centered on helping Indonesia recover from the pandemic, it will also support the country’s efforts to moving closer to its goals of sustained inclusive growth, building a solid middle class, and eventually joining the ranks of high-income countries.
The Framework is aligned with the Government’s Medium-Term National Development Plan 2020-2024, known as the RPJMN, and responds to economic policies made to the emergency and economic recovery response to the COVID-19 pandemic. In addition, it takes into account the WBG’s priorities and is informed by the Systematic Country Diagnostics (SCD) update for Indonesia.
The CPF caters to a possibly higher degree of ambition in certain areas such as SOE reform, revenue expansion, decarbonization of energy sources, and climate change policies.
The CPF has been developed through a series of virtual consultations during September-January 2021 and March 2021 with various stakeholders including the Government, civil society organizations, development partners, and the private sector ensuring that the process was extensive and inclusive.
The new CPF is built around four engagement areas between the World Bank Group and the Government of Indonesia, as well as with other stakeholders:
Strengthened economic competitiveness and resilience through higher revenue collection and fiscal and debt sustainability; improved public spending; reduced barriers to trade and investment; and increased depth, efficiency, and resilience of the financial sector.
Improved infrastructure through strengthening of infrastructure provision and quality of service, and transition to low-carbon energy while attaining universal access to reliable and sustainable energy.
Nurtured human capital through improved quality and equity of education and skills, as well as in nutrition and health, and strengthened inclusiveness and responsiveness of social and worker protection.
Sustained management of natural assets, natural resources-based livelihoods, and disaster resilience through strengthened management of natural assets and environment, as well as improved agriculture and natural resources-based livelihoods and strengthened multi-hazard disaster resilience
Three cross-cutting themes -- digitalization, gender, and climate change -- will run across the four engagement areas and are mainstreamed across all activities under the new Partnership Framework. These themes represent new strategic shifts as they are critical to supporting the sustainability of growth in an economy of growing sophistication as diagnostic studies show.
The Framework is built on a partnership that has lasted for more than six decades and represents one of the largest country programs across the World Bank Group.