Indonesia and ADB
In the Spotlight
A microfinance program in Indonesia's North Sumatra is helping people outside of the financial system overcome their fear of banking and expand their small businesses.
Indonesia’s economic growth is expected to pick up next year, buoyed by rising public investment and continued economic reforms, says a new ADB report.
ADB has approved a $400 million program loan to help Indonesia develop its financial sector, including expanding access to financial services for poor households.
The Asian Development Bank and Indonesia’s PT Sarana Multi Infrastruktur (PT SMI) have agreed to work together on public-private partnerships to develop infrastructure projects in Indonesia.
Indonesia boasts the largest economy in the Association of Southeast Asian Nations (ASEAN), and the 16th largest worldwide. The country has recorded strong economic growth over the past 6 years, and has made significant strides in reducing the incidence of poverty. The new government has pledged to enhance the country’s competitiveness by accelerating infrastructure development, improving human resource development, and implementing bureaucratic reforms.
ADB adapts its support for Indonesia to reflect the complex development needs of a rapidly evolving middle-income country. The focus of assistance has moved from an emphasis on agriculture in the 1970s, to energy, urban infrastructure, and education in the 1980s, to finance sector reform and resilience in the late 1990s.
Projects in Indonesia
- Sustainable and Inclusive Energy Program (Subprogram 1)
- Preparing the GEODIPA Geothermal Power Development Project
- Community-Focused Investments to Address Deforestation and Forest Degradation
- Electricity Grid Strengthening—Sumatra Program (formerly Sumatra Power Grid Strengthening Program)
- Flood Management in Selected River Basins Sector Project