ADB Provides IDR 7.7 Trillion Fund Loans To Support Indonesia's Development

Illustration of the Rupiah (Photo: Doc. Antara)

JAKARTA - Asian Development Bank (ADB) provides loans worth 500 million US dollars or Rp7.7 trillion (Rp15,402 per US dollar) to support Indonesia's reform development and priority agenda. This is to create an environment that supports investment, reduces trade barriers, and increases the scale of the business world.

"Reforming policies under this program will help Indonesia attract more investment, including in green and sustainable businesses, reduce trade barriers, and empower local businesses," said Director of ADB for Indonesia Jiro Tominaga in a written statement received by ANTARA in Jakarta, Monday.

The second subgram of three subgrams in the Competitiveness, Industrial Modernization and Trade Acceleration Program (CITA/Competitiveness, Industrial Modernization, and Trade Acceleration Program) continued from the success of the first subprogram approved in October 2021.

CITA is in line with Indonesia's 2045 Vision and the 2020-2024 National Medium-Term Development Plan (RPJMN), and is an important part of the Indonesian country's partnership strategy by ADB, 2020-2024, especially strategic routes to accelerate economic recovery and strengthen climate resilience.

"In order to achieve high income status in 2045, Jiro Tominaga said the government anticipates that Indonesia's gross domestic product must grow at least 6 percent every year, far above the pre-pandemic average of 5.3 percent," he said.

"Indonesia's progress has been good in recovering from the COVID-19 pandemic, but ongoing structural reforms are still needed to increase its growth potential by stimulating investment, creating jobs, improving the business climate, and trading," he said.

The Indonesian government has taken a series of actions to increase the investment climate, as agreed upon based on subprogram 2. Approval of business licenses has been made faster through updates on online single-submission, a risk-based approach that integrates national, regional and ministry processes.

In addition, to attract more investment and support Indonesia's transition to a low-carbon economy, the government deepens subprogram 1 reforms and, among other things, promotes investment in energy efficiency and creates an environment that supports more green investment.

Foreign direct investment in electric vehicle battery manufacturing was also approved, including the signing of five high-value contracts, which are expected to create at least 49,000 jobs.

To reduce trade barriers, the government implemented three new systems based on the National Logistics Ecosystem Arrangement Action Plan (20202024) to digitally connect the public sector with the private sector in the logistics chain.

These efforts include launching an online payment platform for logistics services with six banks by implementing a single operating system for port operators. The National single window is improved and the government's procurement competitiveness is strengthened.

As part of efforts to increase the scale of the business world, the government improves the entrepreneurial ecosystem and increases the capacity of the business world so that it can be more export-oriented and technology, especially women's businesses, which often do not realize or do not have adequate capacity to participate in government procurement.

An integrated system whose data is sorted by gender for micro, small and medium enterprises has been created, which will be used to track, analyze, and report the performance of companies owned by women.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, and continues its efforts to eradicate extreme poverty. Founded in 1966, ADB was owned by 68 members, of which 49 members were in the Asia and Pacific regions.