Washington: The World Bank’s Board of Executive Directors has endorsed a new Country Partnership Framework (CPF) for Indonesia for the period of 2021-2025.
The overarching objective of the new framework is to promote economic recovery from the covid-19 pandemic as well as inclusive and sustainable growth into the future.
"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, in a press release on Tuesday.
The new CPF was developed in the shadow of the ongoing covid-19 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 new CPF focuses on four engagement areas: strengthening economic competitiveness and resilience; improving infrastructure; nurturing human capital; and sustaining management of natural assets, natural resources-based livelihoods, and disaster resilience.
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.
"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.
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.