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              REPUBLIC OF INDONESIA: COUNTRY PARTNERSHIP STRATEGY

                                                     CHAIR’S SUMMING UP

                                               Meeting of the Executive Directors

                                                               December 11, 2012


       Executive Directors discussed the joint IBRD/IFC/MIGA Country Partnership Strategy
(CPS) for the Republic of Indonesia for the period FY13-15 which builds on the successes and
lessons learned from the previous CPS and is well aligned to the country’s Master Plan for
“Acceleration and Expansion of Indonesia’s Economic Development 2011-2025” (R2012-0232
[IFC/R2012-0354; MIGA/R2012 -0068]).

        Directors welcomed the CPS including the four strategic objectives of pro-growth, pro-
jobs, pro-poor and pro-green development and the two crosscutting themes of gender as outlined
in the Country Gender strategy and governance. While noting that the Government of Indonesia
(GoI) managed its macroeconomic situation prudently through the global economic crisis, they
stressed the importance of strengthening investment climate reforms; continuing efforts to
support investments in infrastructure to leverage Public Private Partnerships; and improving
competitiveness and productivity in agriculture. They also urged close monitoring and mitigation
of the effects of rapid urbanization in the country; and for greater efforts in sustainable forest
management and disaster resilience.

        Directors stressed that due attention should be given to poverty reduction and gender
equality through investments in social safety nets and improvements in the management of the
education system. In this regard, they encouraged the Bank to provide experience and cross
learning from across the world, in particular South-South knowledge cooperation. Directors
encouraged further GoI’s efforts towards progressive and greater targeting of fuel subsidies
which is essential for sound public financial management. They noted the importance of
strengthening institutional capacity including at local governments, improving service delivery,
and enhancing accountability while supporting decentralization with proper incentives.

        Directors welcomed the increasing results-and-performance-based focus and the greater
use of Indonesia’s own systems, and stressed the need to enhance the results matrix to improve
the results of the previous CPS. They highlighted the importance of strengthening WBG
coordination including on mobilization of additional resources for financial assistance and
knowledge activities. Directors also noted the importance of strengthening donor coordination
given the important role of multi-donor trust funds as a source of funding. 




                                                            
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  This summary is not an approved record.