Spurring Economic Transformation, RI's Job Creation Law Receives World Bank Appreciation

Illustration. (Photo: Doc. Antara)

JAKARTA - Coordinating Minister for Economic Affairs Airlangga Hartarto said that Indonesia's economic transformation in Law (UU) no. 11 of 2020 concerning Job Creation has received support from several international economic institutions, one of which is the World Bank (World Bank).

According to Airlangga, the collaboration between Indonesia and the World Bank has been going on for six decades and is one of the most significant in terms of financing, knowledge services, and implementation support.

"Since 2004, the World Bank's support for Indonesia has led to support for the implementation of this country's agenda, consistent with Indonesia's status as a middle-income country," he said in an official statement, Thursday, June 24.

Airlangga added that in April 2021 the World Bank Group had renewed cooperation with Indonesia through the Country Partnership Framework (CPF) 2021-2025. This is in response to the 2020-2024 National Medium-Term Development Plan (RPJMN) in line with the adaptation of economic policies made in response to the COVID-19 pandemic.

"The CPF reflects the deep dialogue between the Indonesian government and the World Bank Group about inclusive and sustainable economic recovery during the pandemic and the long-term needs of Indonesia itself," he said.

The CPF 2021-2025 theme consists of several agenda items, such as gender, digitalization, climate change, inclusion of disadvantaged areas.

Meanwhile, the supporting objectives in the CPF are to improve policies and administration to achieve higher revenues for the fiscal sector, as well as improve policies that increase efficiency, equity, and effectiveness in central and local government spending.

On the same occasion, Vice President of the World Bank for East Asia and Pacific Victoria Kwakwa said that his party appreciates the cooperation that has been established so far. In particular, he appreciated Indonesia's position which is currently undergoing an economic transformation to achieve the nation's ideals of achieving high incomes and becoming a developed society.

“We support all of Indonesia's (currently rolling out) transformation programs, and with experience we will be able to help accelerate the implementation of these programs. We will be able to share experiences (which have been done) with other countries such as Singapore and China,” concluded Victoria.