Washington, DC, May 15, 2023. The World Bank’s Board of Executive Directors approved on May 12, 2023, a US$250 million loan to strengthen population and civil registration while increasing usage of digital identification to improve service delivery in Indonesia and deepen trust in the country’s digital economy.
The ID for Inclusive Service Delivery and Digital Transformation Project, to be implemented under this financial support, will support the Directorate General of Population and Civil Registration (Ditjen Dukcapil), Ministry of Home Affairs, to improve Indonesia’s existing population and civil registration systems, especially to increase coverage in twelve priority provinces and among vulnerable populations nationwide. It will support the development of key digital public infrastructure, including an identity verification and electronic know your customer (e-KYC) platform, a digital identification app, and a data exchange platform to facilitate seamless and secure sharing of information across government. The Project will also modernize Ditjen Dukcapil’s data infrastructure and boost its cybersecurity capabilities and personal data protection and privacy frameworks.
“The Project will support the improvement of the standard of living of all Indonesians by ensuring that everyone has a Resident Identitification Number (NIK), and that they can use their NIK to easily transact with government agencies and businesses, whether in-person or online,” said Tito Karnavian, Minister of Home Affairs of the Republic of Indonesia. It will help us continue to keep population data safe and secure while building world-leading digital platforms that will contribute to realizing Indonesia’s vision for e-Government - System Pemerintahan Berbasis Elektronik (SPBE).
Identification systems are widely recognized as a key enabler for development as the ability to verify legal identity promotes access to public and private sector services such as social protection, healthcare, education, financial services, and e-commerce, as well as economic opportunities such as formal employment.
“The World Bank is ready to support the Government of Indonesia to improve its digital identification and harness technology to achieve better economic and social inclusion for all Indonesians, especially for those who are vulnerable and located in lagging regions,” said Satu Kahkonen, World Bank Country Director for Indonesia and Timor-Leste. Digital public infrastructure, to be developed through this Project, will strengthen delivery of social protection, boost growth of inclusive digital economy, and build resilience to climate and other shocks.
Digital identification empowers people to transact remotely and control their personal information without the need to visit a physical office, eliminates geographic and physical barriers, and unlocks the ability to undertake higher value transactions online. As an archipelagic country with growing internet usage, the introduction of a secure and trusted digital identification can accelerate Indonesia’s transition to an inclusive digital economy, society, and government by addressing digital divides and promoting innovation.
The Project is in line with the World Bank Group’s Green, Resilient and Inclusive Development Approach and the Country Partnership Framework (CPF) for Indonesia fiscal years 2021 to 2025, including the overall objective of promoting sustainable and inclusive economic recovery and long-term growth.
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