Indonesia - Country Partnership Framework for the Period FY2026–FY2030 : Supporting Documents

Overview & Synopsis

Indonesia has sustained steady growth and reduced poverty but faces a shortage of good jobs, constrained private sector dynamism, fiscal pressures from low revenues, uneven infrastructure and service quality, persistent human capital gaps, and mounting environmental and climate vulnerabilities alongside a widening digital divide. In the coming years, the World Bank Group will focus on building a more capable state that enables private investment by strengthening domestic revenue mobilization, improving public spending efficiency, reforming state-owned enterprises, enhancing competition and regulatory predictability, deepening financial and capital markets, expanding access to finance for micro, small, and medium enterprises (MSMEs) and women, and accelerating digital government systems. It will invest in world-class human capital by strengthening health infrastructure and primary care, improving the national health insurance system, and catalyzing private sector participation in medical manufacturing and service delivery. The program will scale resilient, productivity-enhancing infrastructure through a low-carbon energy transition including renewables and storage, modernized grids, better road connectivity and mass transit, expanded safe water, sanitation, and waste management, and broader broadband and data infrastructure, while integrating flood and disaster risk management. It will preserve and leverage natural capital by supporting forest and marine conservation, restoring critical ecosystems, advancing sustainable and diversified agriculture, and promoting low-carbon solutions across industries and resource-based value chains. Across these areas, the World Bank Group, including IFC and MIGA, will crowd in private capital and deploy public private partnership solutions to stimulate private sector led growth and create better jobs.