The Asian Development Bank (ADB) has approved a $500 million loan to bolster Indonesia’s progressive endeavors in streamlining investment climates, fortifying trade, and advancing enterprises.
The approval is an extension of the Competitiveness, Industrial Modernization, and Trade Acceleration Program (CITA), following the success of its initial subprogram in October 2021.
The Indonesian Government, under this second subprogram, is intensifying efforts to create a conducive atmosphere for investments and diminish trade hindrances. Rapid advancements in business license approvals have been realized through an updated online single-submission system and the integration of various governmental processes.
This initiative aims to attract substantial investments, supporting Indonesia’s shift towards a sustainable, low-carbon economy. The government’s endeavors include green investment promotions and approvals for manufacturing batteries for electric vehicles, leading to the creation of approximately 49,000 jobs from five significant contracts.
In accordance with the National Logistics Ecosystem Masterplan (2020–2024), the government introduced three new systems to foster digital connections between public and private sectors in the logistics chain, and enhance the national single window.
Additionally, measures to empower enterprises have been instigated, with a focus on nurturing export and technology-oriented businesses, especially those owned by women, through the establishment of an integrated sex-disaggregated system for small to medium-sized enterprises.
Jiro Tominaga, ADB Country Director for Indonesia, emphasized the necessity of continuous structural reforms to surpass the pre-pandemic annual GDP growth average of 5.3% and reach at least 6.0% for achieving high-income status by 2045. He said:
Policy reforms under the program will help Indonesia attract more investments, including in green and sustainable businesses, ease trade barriers, and empower local enterprises,” remarked Tominaga.
This loan is congruent with Indonesia’s Vision 2045 and the National Medium-Term Development Plan 2020–2024, also aligning with ADB’s strategic pathway for Indonesia from 2020–2024, focusing on economic recovery and climate resilience.
ADB remains steadfast in its commitment to fostering a prosperous and sustainable Asia and the Pacific, continually striving to abolish extreme poverty. Since its establishment in 1966, it has expanded to include 68 members, 49 of which are from the region.