Indonesia - Country Partnership Framework for the Period FY2026–FY2030

Overview & Synopsis

Indonesia has sustained steady economic progress with expanded access to services and digital connectivity and notable reductions in poverty and unemployment, yet the quality of jobs is constrained by a complex business environment, shallow financial markets, dominance of state-owned enterprises, widespread informality, inefficient logistics, climate risks, and persistent gender gaps that dampen productivity and inclusion. In the coming years, the World Bank Group will focus on building a capable state that enables private sector–led growth by supporting regulatory predictability, streamlined licensing and trade facilitation, digitalization of government services, deeper and more inclusive financial and capital markets, stronger domestic revenue mobilization and expenditure efficiency, and reforms that improve the performance and governance of state-owned enterprises to crowd in private investment. The program will strengthen human capital with an emphasis on workforce health through better primary care, nutrition, health financing and insurance, enhanced service delivery infrastructure, and responsible expansion of private participation in medical products and services, alongside selective analytics to inform education system reforms and targeted support for the care economy to boost female labor force participation. It will invest in resilient, productivity-enhancing infrastructure by advancing the energy transition, modernizing grids and storage, promoting demand-side efficiency, improving national and urban transport connectivity, expanding broadband and data infrastructure, enabling municipal finance, and creating clearer pathways for private participation through improved public-private partnership frameworks and asset recycling. It will unlock natural capital for jobs, livelihoods, and sustainable growth by restoring landscapes and marine resources, supporting climate-smart and higher-value agriculture, strengthening sustainable fisheries and nature-based value chains, and expanding sustainable tourism, while mobilizing private capital and promoting low carbon solutions across sectors through coordinated IBRD, IFC, and MIGA support.