Media Contacts: In Jakarta: Randy Salim Tel: + (62 21) 5299-3259 rsalim1@worldbank.org In Washington: Mohamad Al-Arief (202) 458-5964 malarief@worldbank.org Washington DC, September 11, 2008 – The World Bank’s Board of Executive Directors today endorsed a new Country Partnership Strategy (CPS) for Indonesia which will see the World Bank Group supporting Indonesia’s development priorities, with emphasis on strengthening national institutions. The CPS governs the World Bank Group’s programs in Indonesia over the period of 2009-2012. The strategy notes that ten years after the Asian Financial Crisis, Indonesia has emerged as a confident middle-income country on the back of a far-reaching reform program and prudent fiscal management. Indonesia’s macroeconomic fundamentals continues to be strong and the country is weathering the global economic slowdown well. But going forward, the strategy also highlights the need to make institutions more effective in delivering development results. “Indonesia’smain challenge today is the need for more effective institutions.This strategy aims to help the government improve its existing programs and strengthen the institutions involved,” said Joachim von Amsberg, Indonesia Country Director for the World Bank. “When institutions are strengthened, the people win because budgets are then translated into more effective development outcomes: better schools, better health clinics, and better livelihoods for the people.” Over the course of four years, the World Bank Group will provide around US$ 2 billion a year to build the capacity of central and sub-national institutions related to environmental sustainability and disaster mitigation, education, poverty reduction, community development and social protection, infrastructure, and private sector development. “With this new flexible approach, the World Bank Group wants to support success stories of replicable institutional reforms,” said Jim Adams, the World Bank’s Vice President for East Asia and Pacific. “The Bank’s approach will focus on the next generation of reforms needed to improve Indonesia’s competitiveness and integration into the world economy while also attending to growing needs for good governance, modernized social protection systems, better environmental management and improved infrastructure.” The CPS includes a growing role for the International Finance Corporation (IFC), which expects new investments to exceed $300 million per year. "The private sector has an important role to play in addressing a number of Indonesia’s development challenges,” said Adam Sack, Indonesia Country Manager for IFC. “Over the course of the CPS period, IFC will invest long term capital and provide advice to increase access to financial services, improve infrastructure and strengthen commodity-based supply chains. Working both at national and sub-national levels, IFC will also support Government initiatives to improve the business environment." The emphasis of the financing and knowledge program will continue to shift towards directly supporting successful or promising priority programs of the government. The new CPS builds on the governance focus of the Country Assistance Strategy (CAS) for 2004-2008. The World Bank Group will apply the “institutional lens” – all investments, together with advisory and analytical services will be concentrated on the institutions, sectors, systems and programs where this approach is most likely to succeed. To learn more about the World Bank’s support for Indonesia visit: www.worldbank.org/id The Country Partnership Strategy (CPS) is the detailed report on the World Bank Groups’s priority areas to assist client countries with their own development programs. It describes all of the World Bank Group's planned support for Indonesia, including lending, studies, and other technical assistance This new strategy covers fiscar years 2009 - 2012 and will support the following key areas: Strengthening Institutions – the World Bank Group aims to help Indonesia complete its institutional transition and engage with institutions –both at the national and sub-national level—that are committed to change, identify committed reformers, and provide them with the support needed to realize their vision of change. Private Sector Development – the World Bank Group aims to help make Indonesia’s private sector a driver in broad-based growth, and in turn increase Indonesia’s competitiveness regionally and globally. Infrastructure – the World Bank Group aims to help the Government build a better Indonesia by mobilizing the financial and human resources needed to support Indonesia’s infrastructure plans. Community Development and Social Protection – the World Bank Group will continue to support the Government in the design and expansion of programs that promote more inclusive growth and social protection, while also ensuring greater accountability of service providers. Education – the World Bank Group aims to help the Government complete its transformation of the education sector by zoning in on key areas of the Government’s education reform agenda, like building mechanisms for social accountability, promoting external transparency and access to information, and enhancing monitoring and evaluation systems. Environmental Sustainability and Disaster Mitigation – the World Bank Group aims to help Indonesia become a model for developing countries in adapting to climate change. |
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