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Statement January 7, 2019

Indonesia: World Bank Statement

The World Bank would like to comment on a few articles published by CNN Indonesia on January 4, 2019.

These articles quote a report that the World Bank is currently finalizing in close collaboration with the Indonesian Government.  This report is titled “Indonesia Infrastructure Sector Assessment Program” (InfraSAP).  The report takes stock of the substantial progress achieved by Indonesia in developing its infrastructure over the last few years as well as the opportunities and instruments available to the authorities to continue closing the infrastructure gap that has accumulated over generations.

The World Bank began the preparation of this report in mid-2017 following an invitation from the government to work together in finding solutions to attract more private and commercial financing to the infrastructure investments required to achieve the government’s ambition of maintaining the country’s competitiveness and improving the lives of all Indonesians.

The InfraSAP is a comprehensive analysis of the constraints that may reduce commercial and private financing of infrastructure.  It includes a set of possible policy reforms that may be considered and implemented by the country in the short and medium terms.

The report recognizes that closing an infrastructure gap accumulated over many decades will take sustained corrective action over a period of time. The report also acknowledges the progress made by the Government and its strong commitment to closing this gap.

From our discussions with the relevant ministries and government agencies, we appreciate the progress being made to enable stronger coordination between the government’s budget, SOEs, and the private sector in financing infrastructure projects, including affording the private sector with a better environment to invest in the sector.  We hope that the InfraSap will be a useful input to the authorities in the developing of the RPJMN 2020-2024.

The World Bank has not released the InfraSAP to the public yet. As is the case with all World Bank reports, we have been working closely and discussing with relevant government counterparts including the MoF, Bappenas, Coordinating Ministries, MoSOE, MEMR, MoPWH, MoT, and OJK. For instance, a high-level discussion on the InfraSAP key findings and recommendations took place on December 4, 2018.

Once the consultation with the Government is concluded, we look forward to sharing and discussing the report with all other stakeholders, including, the private sector, development partners, civil society, academia, and the press.


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