Strengthening Indonesia's Education And Health, ADB Provides USD 500 Million Loans

Photo: Special

JAKARTA - The Asian Development Bank (ADB) has approved a USD 500 million policy-based loan to support reforms on human capital development in Indonesia in education systems, skills development, health, and social protection.

The third subgram of the Productivity Improvement Program through the Development of Human Capital (Boosting Productivity through Human Capital Development Program) is focused on institutionalizing reforms as a continuation of the two previous programs that have been approved in 2021 and 2023.

The first subprogram forms a regulatory foundation and carries out various initiatives, while the second expands its implementation. This third subprogram will unite these reforms into Indonesia's national system to support higher labor productivity for sustainable economic growth.

"Indonesia's path to sustainable growth depends on investment in its population," said Director of ADB for Indonesia Bobur Alimov.

Bobur added that by institutionalizing reforms that improve the quality of education, expand access to health care, and strengthen social protection, ADB helps Indonesia build a more productive and inclusive economy without any people left behind.

Main reforms include health insurance measures that expand preventive care coverage so that it also includes screening for breast cancer and uterine cancer, as well as preventing anemia in teenage girls.

The reform empowers women by allowing them to choose their own first-degree health facility and find a safe treatment location for them.

The pre-employment card program, which has trained more than 18 million people, is upgraded with content covering environmental expertise and artificial intelligence, while a new platform for digital career guidance will help match graduates with job opportunities.

The program supports the establishment of an additional 15 Sustainable Development Goals in collaboration with universities, as well as authorized all state universities to prevent and overcome gender-based violence.

In addition, the program has also formed a coordination team for education and technical and vocational training in 63 percent of provinces in Indonesia to further align training with labor market needs.

Then, the program improves performance-based fiscal transfer performance to align regional spending with national priorities.

Adapun, program tersebut dipandu oleh sistem Data Tunggal Sosial Ekonomi Nasional (DTSEN) untuk penargetan bantuan sosial secara akurat.

Program ini juga selaras dengan Visi 2045 Pemerintah Indonesia dan Rencana Pembangunan Jangka Menengah Nasional 2025–2029, serta mendukung strategi kemitraan negara (CPS/country partnership strategy) ADB untuk Indonesia 2025–2029, dengan mengedepankan prioritas di bidang transformasi digital, ketangguhan, dan pemberdayaan.

Meanwhile, the program is guided by the National Sole Social Economic Data (DTSEN) system for targeting social assistance accurately.

This program is also in line with the 2045 Vision of the Government of Indonesia and the 2025'2029 National Medium-Term Development Plan, as well as supporting the State Partnership Strategy (CPS/country Partnership Strategy) ADB for Indonesia 2025's 2029, by prioritizing priorities in the fields of digital transformation, resilience, and empowerment.