Resource information
Seventy years after independence and
more than a decade of political and institutional reforms,
Indonesia has emerged as a stable democracy. Indonesia’s
achievements are now under stress, with a slowdown in its
commodity driven economy, stagnant rates of poverty
reduction, and rapidly rising inequality. The development
policy review, completed in 2014, and the systematic country
diagnostic (SCD), completed in 2015, explain the limited
window of opportunity for Indonesia to reach high per capita
income levels. This country partnership framework (CPF),
covering the period FY2016-20, builds on the previous
country partnership strategy (CPS) FY2013-15 and the
long-term operational and policy-based support that has been
a hallmark of World Bank Group’s (WBG’s) engagement with the
Government of India (GoI) for the past decade. The CPF
concentrates on areas of infrastructure necessary to better
connect the economy, provide sustainable energy, help the
country reap benefits from the rapid pace of urbanization,
and improve equality of opportunity through better access of
the poor and vulnerable to essential water and sanitation
services. The CPF will seek to maximize synergies across the
WBG and take advantage of all instruments in support of the
CPF goals. The CPF will require a larger financing package
than the previous CPS, although WBG’s total contribution
will still be a very small percentage of overall borrowing needs.
