Indonesia : Stepping Up Investments for Growth Acceleration Program Subprogram 2

Project Name

Stepping Up Investments for Growth Acceleration Program Subprogram 2

Project Number

48134-004

Country / Economy

• Indonesia

Project Status

Closed

Project Type / Modality of Assistance

• Technical Assistance

Source of Funding / Amount

TA 8661-INO: Stepping Up Investments for Growth Acceleration Program Subprogram 2

Source	Amount
Technical Assistance Special Fund	US$ 1.50 million

TA 8661-INO: Stepping Up Investments for Growth Acceleration Program Subprogram 2 (Supplementary)

Source	Amount
Technical Assistance Special Fund	US$ 220,000.00

TA 8661-INO: Stepping Up Investments for Growth Acceleration Program Subprogram 2 (Supplementary)

Source	Amount
Technical Assistance Special Fund	US$ 150,000.00

Strategic Agendas

• Inclusive economic growth

Drivers of Change

• Gender Equity and Mainstreaming
• Governance and capacity development
• Knowledge solutions
• Partnerships
• Private sector development

Sector / Subsector

• Public sector management / Public expenditure and fiscal management

Gender

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 administrationbuilding on thrusts, achievements and lessons from past reform effortsto 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 20122025 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 20112025. Attaining such growth requires a rise in the investment ratio beyond its average level of 26% gross domestic product in 20022012. 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.

Contact

Responsible ADB Officer

Boothe, Robert A.

Responsible ADB Department

Southeast Asia Department

Responsible ADB Division

Indonesia Resident Mission (IRM)

Executing Agencies

Coordinating Ministry for Economic Affairs also known as Kementerian Koordinator Bidang Perekonomian (KKBP)

Timetable

Concept Clearance

-

Fact Finding

-

MRM

-

Approval

23 May 2014

Last Review Mission

-

Last PDS Update

28 Sep 2017

Funding

TA 8661-INO