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ADB, Indonesia Agree to New Partnership Strategy
MANILA, PHILIPPINES – The Asian Development Bank (ADB) and Government of Indonesia have agreed on a new $2.5 billion country partnership strategy to boost inclusive growth and improve environmental sustainability, guided by the government’s commitment to “pro-growth, pro-job, pro-poor and pro-environment” development.
“The Government of Indonesia welcomes this partnership agreement that is aligned with the government’s medium- and long-term development plans,” said Armida Alisjahbana, Indonesia’s Minister of National Development Planning and Chairperson of the National Development Planning Agency.
The new 2012-2014 partnership strategy, an outcome of ADB’s consultations with government, other development partners, civil society and the private sector, places an emphasis on more project investments and green growth. ADB will focus its lending and non-lending assistance on six sectors: energy, transport, natural resource management, finance, water supply and other municipal services, and education.
“Over the past four decades, ADB has been a partner in helping support Indonesia’s development and poverty reduction efforts. While Indonesia has achieved impressive progress, development challenges remain,” said ADB Vice-President Stephen P. Groff.
To boost inclusive growth, ADB will support infrastructure-related investments to increase connectivity to markets and improve access to essential services, such as energy, water and sanitation. ADB also aims to increase access to financial services and to strengthen vocational training. ADB will support investments to foster environmental sustainability by improving river basin and water management, and promoting sustainable use of forest resources.
As a large middle-income country, Indonesia’s development priorities and borrowing preferences are changing. As a result, ADB is prepared to be flexible and responsive to changing needs for lending and advisory services. This includes a greater emphasis on knowledge solutions and the sharing of global and regional good practices. ADB will also support initiatives that facilitate regional cooperation. ADB anticipates increasing its private sector and non-sovereign operations to help catalyze private sector investment and public-private partnerships.
“ADB looks forward to responding innovatively to the government’s development agenda and investing in inclusive and environmentally sustainable growth that helps improve the quality of life for all Indonesians,” said Kunio Senga, Director General for ADB’s Southeast Asia Department.