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Indonesia: Supporting Technological Transformation

Sovereign (Public) Project | 51343-001 Status: Active

The project will support analysis of the implications of disruptive technologies on Indonesia. The study will cover both economy-wide impacts as well as the impacts on selected sectors and subsectors (such as manufacturing, finance, energy, e-commerce, and urban). In examining the broader implications for industrialization, employment prospects, and inequality, the analysis will model the effects on the Indonesian economy, which are likely to be transmitted and amplified through global value chains. The sector/subsector analysis will seek to answer the following questions: (i) What are the implications for economic productivity, jobs, and inequality? and (ii) What needs to be done to leverage the benefits and mitigate the risks? The study will prioritize the identification of policies and investment required for increasing Indonesia''s productive capability.

Project Details

Project Officer
Yurendra Basnett Southeast Asia Department Request for information
Country
  • Indonesia
Sector
  • Public sector management
 
Project Name Supporting Technological Transformation
Project Number 51343-001
Country Indonesia
Project Status Active
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 9450-INO: Supporting Technological Transformation
Technical Assistance Special Fund US$ 750,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Private sector development
Sector / Subsector

Public sector management / Economic affairs management

Gender Equity and Mainstreaming Some gender elements
Description The project will support analysis of the implications of disruptive technologies on Indonesia. The study will cover both economy-wide impacts as well as the impacts on selected sectors and subsectors (such as manufacturing, finance, energy, e-commerce, and urban). In examining the broader implications for industrialization, employment prospects, and inequality, the analysis will model the effects on the Indonesian economy, which are likely to be transmitted and amplified through global value chains. The sector/subsector analysis will seek to answer the following questions: (i) What are the implications for economic productivity, jobs, and inequality? and (ii) What needs to be done to leverage the benefits and mitigate the risks? The study will prioritize the identification of policies and investment required for increasing Indonesia''s productive capability.
Project Rationale and Linkage to Country/Regional Strategy

Indonesia stands at the cross roads of global technological transformation. The potential benefits of digitization for Indonesia''s economy is projected to be about $150 billion by 2025. Indonesia is among the fastest growing internet markets in the world. Indicators such as internet traffic, revenue from cloud services, and connected devices (Internet of Things) are growing rapidly. Home-grown online ride-hailing applications, such as Grab and Go-Jek, have not only created jobs, but often provide better wages and benefits, such as health insurance and access to bank accounts, compared to more traditional jobs. However, disruptive technologies may also pose important risks for Indonesia in the form of potential jobs losses in certain sectors and increase in inequality.

The government has developed "2020 Go Digital Vision", which entails Indonesia emerging as the largest digital economy in the Association of Southeast Asian Nations (ASEAN) region by the year 2020. Detailed analysis on the impact of the disruptive technologies on the Indonesian economy, both at the aggregate and the sector levels, will be imperative for supporting evidence based policies as well as the business case for public investments.

Impact Benefits of technology leveraged for sustainable and inclusive economic growth.
Project Outcome
Description of Outcome Better informed public policies and investment plans.
Progress Toward Outcome
Implementation Progress
Description of Project Outputs Flagship study on the implications of disruptive technologies for Indonesia prepared.
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 The TA plans to recruit 13 person-months of international (a lead economist and international experts) and 21 person-months of national experts (through a national firm/research institute). A national firm/research institute will conduct the survey as well as macroeconomic, sector and labor market analysis. All international consultants will be recruited using individual consultant selection. The national firm/research institute will be recruited using consultants' qualification selection. The composition of expertise will be based on sectors selected/prioritized and will be responsive to the knowledge demand.
Procurement All TA financed Goods shall be procured in accordance with ADB Procurement Policy (2017, as amended from time to time) and the associated PAIs/TA Staff Instructions.
Responsible ADB Officer Yurendra Basnett
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Indonesia Resident Mission
Executing Agencies
Ministry of Finance Directorate General of Budget Financing and Risk Management
Frans Seda Building
Jln. Dr. Wahidin Raya No. 1
Jakarta 10710, Indonesia
Timetable
Concept Clearance 22 Nov 2017
Fact Finding 13 Nov 2017 to 29 Nov 2017
MRM -
Approval 08 Dec 2017
Last Review Mission -
Last PDS Update 11 Dec 2017

TA 9450-INO

Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
750,000.00 0.00 0.00 0.00 0.00 0.00 750,000.00 - 0.00

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Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


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Tenders

Tender Title Type Status Posting Date Deadline
International research institute Firm - Consulting Closed 02 May 2018 07 Jun 2018
National Researchers Firm - Consulting Closed 24 Jan 2018 30 Jan 2018
Lead Economist Individual - Consulting Closed 22 Dec 2017 20 Jan 2018

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
Research and Development Technical Assistance 9450 17 May 2018 Yayasan Centre for Strategic & Int'l Studies INO(INDONESIA) Jalan Tanah Abang 3 No 23-27 Jakarta Pus karta 10160 Indonesia. Ministry of Finance Consulting Services 292,100.00

Procurement Plan

None currently available.