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Executive Summary
>>I. Background
A. Political and Macroeconomic Developments
B. Current Development Trends: Issues and Challenges
C. Summary of Development Challenges and Key Points Emerging from the Poverty Assessment
II. The Government's Development Priorities and Outlook
III. Strategies and Programs of Other International Funding Agencies
IV. ADB's Development Experience
V. ADB's Strategy
VI. Risks, Performance, and Monitoring
Country Operational Strategy Studies - Indonesia

I. Background1

1. The Indonesian archipelago comprises an estimated 17,000 islands spread across 4,000 kilometers. About 60 percent of the 210 million populations are on one island, Java. The islands lie along the equator and experience equatorial climate, including heavy rains and stormy weather. Indonesia is also earthquake prone. It is among the most ethnically diverse countries in the world with hundreds of ethnic groups speaking different languages and dialects. The standard of living varies considerably. For example, poverty incidence in the provinces of Java is below 30 percent, against 55 percent in Irian Jaya and 46 percent in the Malukus. Similarly, the potential for economic development and poverty reduction varies from the urban, manufacturing and service centers of Java to the isolated rural areas of Kalimantan, depending on agriculture and natural resources. The challenges of development must be met with a locally specific agenda that meets local needs and is consistent with local culture, capability, and resources.

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  1. David Jay Green, was the principal author for the final document. S. Hafeez Rahman, was leader of the COS Mission and author of the background paper, supported by Charles Andrews, Claudia Buentjen, Kyeongae Choe, Chin Choon Fong, Neeraj Jain, Lisa Kulp, Xiaoying Ma, Mark Mitchell, Sean O’Sullivan, S. Tahir Qadri, Paolo Spantigati, Xianbin Yao. Julie Rogers, and Peter King. Carol Walker provided editing and Erni Susilawati provided administrative support.


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A. Political and Macroeconomic Developments

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