Indonesia Country Partnership Framework (CPF) FY26-30
The new Country Partnership Framework between the World Bank Group and the Republic of Indonesia centers on Partnering for Better Jobs on the Road to Golden Indonesia 2045. It prioritizes four interrelated outcomes: building a capable state that enables the private sector, generating world-class human capital, investing in resilient and productivity-enhancing infrastructure, and unlocking natural capital for jobs, livelihoods, and sustainable growth. It underscores private-sector–driven job creation, stronger governance and regulatory reform, expanded digital and physical connectivity, and climate-smart investment in Indonesia's natural economy. The strategy aims to support Indonesia's transition from upper-middle-income to high-income status by 2045, by addressing the binding structural constraints to productive employment and private capital mobilization.
DOCUMENTS
Strategic Overview
The World Bank Group's CPF outlines a new partnership with Indonesia that builds on the government's long-term and medium-term national development plans — the RPJPN 2025–2045 and RPJMN 2025–2029. The framework is deliberately selective, targeting areas of WBG comparative advantage, reform readiness, and transformative, development potential. It prioritizes the creation of better-quality jobs in higher-value sectors, prioritize reforms to reduce costs of doing business, deepen financial markets, improve SOE productivity, and unlock Indonesia's vast natural capital for sustainable growth.
Results Matrix
The framework is anchored in the goals of job creation and private capital mobilization, and emphasizes the importance of structural reform and coordinated WBG engagement across IBRD, IFC, and MIGA instruments in achieving these goals. The four outcome areas — a capable state that enables the private sector, human capital, resilient infrastructure, and natural capital — form an integrated theory of change designed to help Indonesia reach high-income status by 2045
Financing and Implementation Arrangements
Implementation follows a "One WBG" approach, with IBRD focused on strengthening policies, institutions, and public investments to crowd in private participation; IFC deploying and mobilizing capital to directly demonstrate commercial viability across key sectors; and MIGA providing guarantee instruments to unlock investment in critical areas. Coordination with bilateral partners and multilateral development banks is central to the strategy, with the WBG proactively aligning diagnostics and pooling resources to achieve scale. Implementation is deliberately selective, targeting areas of WBG comparative advantage and reform readiness in support of Indonesia's national development plans.
World Bank Group Portfolio Snapshot
(IBRD, IDA, IFC, MIGA)
Indonesia's development is supported through a diverse and active portfolio of World Bank Group projects focusing on infrastructure, energy transition, human capital, agriculture, digital connectivity, and financial sector development.
Selected Economic Indicators
Over the past two decades, Indonesia averaged 5% annual growth, reduced the poverty rate from 18% to 8%, and halved unemployment to approximately 5%. The country has reached upper-middle-income status, with labor force participation rising to 70% and internet connectivity expanding to 73%. The macroeconomic context highlights remaining structural constraints, including relatively shallow financial markets, high logistics costs, and a predominantly informal workforce, which set the context and assumptions underlying the CPF strategy.
Streamlined Systematic Country Diagnostic (SCD)
The current SCD assesses the binding constraints to growth, inclusion, and sustainability in Indonesia, drawing on the Indonesia Country Growth and Jobs Report, the 2024 Financial Sector Assessment Program, the draft Country Private Sector Diagnostic, and the planned Public Finance Review. It identifies four priorities to unlock the right mix of investment and quality jobs needed to achieve high-income status: building state capacity to facilitate the private sector; improving education and health quality; increased investment in infrastructure; and leveraging natural assets to serve as engines for growth.
Completion and Learning Review
This Completion and Learning Review takes stock of the implementation of the previous World Bank Group Country Partnership Framework for Indonesia. It documents key achievements and distills lessons learned to inform the FY26–30 strategy. Key lessons include the importance of a multi-sectoral approach to reform, early and sustained community engagement, flexibility within structured plans, a strategic mix of WBG financing instruments, and deepened collaboration with bilateral partners and multilateral development banks for coordinated and collective impact.
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Indonesia World Bank Group Country Team
