Indonesia: Stepping Up Investments for Growth Acceleration Program Subprogram 2

Sovereign Project | 48134-004

Summary

SIGAP is designed to adopt a bottom-up approach by promoting an evidenced-based policy dialogue approach through piloting the implementation of certain policy actions at local levels. It also adopts a new approach to dialogue between national and local governments and the business community to address policy incoherence between different tiers of government. The interplay of an evidence-based approach and effective public-private dialogue aims to achieve better buy-in from all stakeholders, improve coordination and ease implementation difficulties, where the largest set back has been experienced in the past.

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Consulting Notices

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Procurement Notices

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Procurement Documents

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Project Name Stepping Up Investments for Growth Acceleration Program Subprogram 2
Project Number 48134-004
Country Indonesia
Project Status Approved
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 8661-INO: Stepping Up Investments for Growth Acceleration Program Subprogram 2
Technical Assistance Special Fund US$ 1.50 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector Public sector management - Public expenditure and fiscal management
Gender Equity and Mainstreaming Some gender elements
Description

SIGAP is designed to adopt a bottom-up approach by promoting an evidenced-based policy dialogue approach through piloting the implementation of certain policy actions at local levels. It also adopts a new approach to dialogue between national and local governments and the business community to address policy incoherence between different tiers of government. The interplay of an evidence-based approach and effective public-private dialogue aims to achieve better buy-in from all stakeholders, improve coordination and ease implementation difficulties, where the largest set back has been experienced in the past.

Programmatic approach adopted for SIGAP will allow the new administration building on thrusts, achievements and lessons from past reform efforts to chart the next phase of policy reforms and raise the credibility of government's actions. With this thrust, SIGAP will comprise two subprograms. Subprogram 1 is expected to be submitted to ADB Board of Directors for consideration on or before 30 September 2014, with Subprogram 2 expected to be submitted in September 2016. SIGAP also reflects discussions with multilateral and bilateral development partners and leverages their on-going and programmed support to the reform areas covered by the program.

Project Rationale and Linkage to Country/Regional Strategy

Indonesia still faces fundamental challenges in achieving sustainable and equitable growth. One key factor is insufficient investment. The proposed Stepping Up Investments for Growth Acceleration Program supports the Government's General Plan for Direct Investments for 2012 2025 approved by the President of Indonesia in 2012 aimed at accelerating domestic and foreign capital investments.

From 2003 to 2013, Indonesia has been growing growing on average by 5.7%. However, the growth is still below the target required to enable Indonesia to become one of the 10 major economies in the world by 2025. For this to happen, Indonesia must grow annually by 7% 9% in 2011 2025. Attaining such growth requires a rise in the investment ratio beyond its average level of 26% gross domestic product in 2002 2012. Some estimates suggest that the investment ratio may need to go as high as 47% by 2019 to reach the required economic growth. Achieving higher levels of investment will require the government to increase private and public investments.

Impact
Project Outcome
Description of Outcome
Progress Toward Outcome
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services TA will be provided by a firm recruited through quality- and cost-based selection, indicatively including 21 person-months of international consultant inputs, and 30 person-months of national consultant inputs. ADB will select and engage consultants in accordance with its Guidelines on the Use of Consultants (2013, as amended from time to time). Some of the contingency funds will remain unallocated and can be used for individual consultants to be determined as needed. Upon TA completion, equipment procured under it will be transferred to the executing agency.
Responsible ADB Officer Rabin Hattari
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, SERD
Executing Agencies
Coordinating Ministry for Economic Affairs2nd Floor, Jl Lapangan
Banteng Timur 2-4
Jakarta Pusat 10710
Timetable
Concept Clearance -
Fact Finding -
MRM -
Approval 23 May 2014
Last Review Mission -
Last PDS Update 22 Jul 2014

TA 8661-INO

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
23 May 2014 05 May 2015 05 May 2015 30 Nov 2016 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
1,500,000.00 0.00 150,000.00 0.00 0.00 0.00 1,650,000.00 23 May 2014 22,153.31

Safeguard Documents

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Evaluation Documents

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