WASHINGTON, May 11, 2021-The World Bank's Board of Executive Directors today endorsed a new Country Partnership Framework (CPF) for Indonesia for the period of 2021-2025. .
"Under this new Framework, the World Bank Group will continue its partnership with Indonesia by helping the country recover from the impacts of COVID-19 while also moving closer to its goals of inclusive growth, building a solid middle class, and eventually joining the ranks of high-income countries," said Victoria Kwakwa, World Bank Vice President for East Asia and the Pacific.
The new CPF was developed in the shadow of the ongoing pandemic, which has taken an enormous human toll and has had serious economic impacts on the country. Designed closely in line with the government's medium-term development plan, this .
As a result of the pandemic, the government has shifted its focus toward strengthening policies and institutions - particularly in health, social protection, education, and digitalization. On the digital side, the CPF aims to increase efficiency and inclusion by improving services and addressing the digital divide.
"The private sector has a critical role to play in reigniting economic growth and IFC's leadership in developing sustainable, inclusive opportunities and mobilizing more private investment will be essential to recovery in our client countries," said Alfonso Garcia Mora, IFC Vice President, Asia and Pacific. "In keeping with the spirit of this CPF, we will also maintain our strong focus on financial inclusion through our work on digitalization, and continue working with MSMEs and providing technical assistance to modernize capital market infrastructure."
Utilizing both lessons from the government's programs to date as well as adjusted strategies to strengthen responses to uncertainties created by the pandemic, the new CPF is based on a five-year, overall framework and includes approaches for the first three years of the framework period.
"This year and next, the World Bank will focus on helping ensure a sustained recovery, which will involve securing needed economic reforms, increasing revenues, and reinvigorating efforts on climate change, digitalization, and gender equality," said Satu Kahkonen, World Bank Country Director for Indonesia and Timor-Leste. "We are committed to continuing to supporting the government of Indonesia on these cross-cutting themes, as well as in alleviating poverty to achieve a more prosperous nation."
The development of this new CPF benefitted from consultations carried out virtually with the government, development partners, civil society organizations, and the private sector. A key result of these consultations was acknowledgment of the overall impact of climate change on the country and beyond by stakeholders and encouragement for the World Bank Group to continue supporting Indonesia's response to the country's environmental and climate challenges.
