The World Bank is updating its engagement with Indonesia to better align its operations there to the government’s pro-growth, pro-poor, pro-jobs and pro-environment development agenda.
This was outlined in the new country partnership strategy discussed Dec. 11 by the World Bank board. The strategy will guide the bank’s operations in Indonesia in 2013 and 2014, which are also the last two years of President Susilo Bambang Yudhoyono’s administration. The bank is then set to develop another strategy with the new administration that will take over in 2015.
The strategy is expected to build on the previous one, which focused on investing in Indonesia’s institutions in five key areas: private sector development, infrastructure, community development and social protection, education, and environment sustainability and disaster mitigation.
Examples of priority initiatives included in the new strategy are improvements to the national poverty targeting system, health programs for women and children, community-driven development programs, green growth and disaster preparedness projects, infrastructure development and initiatives to improve connectivity, competitiveness and public service delivery.
Private sector development is also included in the new strategy, with planned initiatives to be led by the International Finance Corp.
With this strategic shift, the World Bank follows the Asian Development Bank’s lead in adopting and supporting Indonesia’s equitable growth agenda. Both multilateral banks have said the shift was necessary as the country transitioned to middle-income status.
The World Bank and ADB are Indonesia’s top multilateral donors. The World Bank has 44 ongoing operations in Indonesia and has provided $3.2 billion worth of loans this year so far. ADB, meanwhile, provided $580.2 million in loans and technical assistance to the country in 2011.
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