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Asian Development Bank &
Indonesia
FACT SHEET
Table 1. Indonesia: Development Indonesia has experienced strong economic expansion since recovering from the 1997
Indicators Asian financial crisis. Economic growth accelerated to a 10-year high of 6.3% in 2007 and a
respectable 4.5% in 2009, making the country one of the best performers within the global
Non-MDG
Population in millions 231.37 (2009)
recession. At the end of December 2009, international reserves rose to an all-time high of
Annual population $66.1 billion, or 7.1 months of merchandise imports. Confidence in the country’s reserves was
growth rate (%) 1.3 (2007–2009) further bolstered by substantial currency swap agreements in the total amount of more than
Adult literacy rate (%) 92.0 (2006) $30 billion. The overall fiscal deficit for 2009 was 1.6% of gross domestic product (GDP) and
Percent of population included a substantial fiscal stimulus. Indonesia’s debt-to-GDP ratio has continuously declined
in urban areas 51.5 (2008)
from 57% in 2004 to 28% by the end of 2009.
MDG
Robust economic growth prior to the crisis and sound macroeconomic management during
Percent of population living
on less than $1.25 a day 29.4 (2007) the crisis are reflected in Indonesia’s employment numbers. Indonesia’s unemployment rate
Percent of population living shrank from 11.2% in 2005—the highest rate in the last 5 years—to 7.9% in August 2009.
below the national poverty However, poverty remains challenging, with 14.1% of Indonesians living below the national
line 14.2 (2009)
poverty line while the informal sector accounts for about 70% of the workforce.
Under-5 mortality rate per
1,000 live births 41 (2008) GDP growth is forecast to accelerate to 5.5% in 2010 driven by domestic consumption
Percent of population using and a recovering global economy. Under its 2010−2014 Medium-Term Development Plan,
an improved drinking water the government identified 11 national priorities: (i) bureaucracy reform and good governance;
source 80 (2006)
(ii) education; (iii) health; (iv) reducing poverty; (v) food security; (vi) infrastructure;
… = data not available, MDG = Millennium Development Goal. (vii) investment and business climate; (viii) energy; (ix) environment and overcoming disasters;
Sources: ADB. 2010. Basic Statistics 2010. Manila.
UNESCO. 2010. Institute for Statistics Data Centre.
(x) less developed, border, and post-conflict regions; and (xi) culture, creativity, and technological
World Bank. 2010. World Development Indicators Online. innovations.
Relationship with ADB
Indonesia is a founding member of the Asian Development Bank (ADB) since 1966 and, by the
end of 2009, had received 303 loans amounting to $25.7 billion and 504 technical assistance
(TA) projects amounting to $282.9 million. Measured by loan approvals, Indonesia is ADB’s
largest client, and its second largest recipient of TA support.
Measured in cumulative ADB lending, 41% of overall lending supported agriculture and
natural resources, energy, and transport and communications. Law, economic management, and
public policy accounted for 16% of the total lending, reflecting the significance of policy-based
lending since the 1997 Asian financial crisis.
Impact of Assistance
ADB’s engagement with Indonesia has been increasingly defined by the complex development
needs of a rapidly evolving middle-income country. Within this context, ADB’s policy-based
operations have increased over the past few years to support the government’s reform agenda.
This was compounded in 2009 through support of the government’s global economic crisis
management initiatives.
As of 31 December 2009
In 2009, the Public Expenditure Support Facility (PESF) and 25% is expected. The CMDPC led not only to increased diversification
the Countercyclical Support Facility (CSF) in the total amount of of markets but also accelerated capital market growth. Strengthened
$1.5 billion (of a total of $2.184 billion lending in 2009) provided regulatory and supervisory capacity ensured resilience of the finance
assistance to reduce the impacts of the global crisis in Indonesia. sector, protecting the economic development of the economy as
The PESF, supported by several development partners and ADB, is a whole.
a contingent facility to shore up confidence by providing access to
finance in the event that credit markets become prohibitively expensive,
as during the height of the global crisis. This facility contributed
Future Directions
to improve risk perception. The CSF was an additional measure ADB’s 2006–2009 Country Strategy and Program has recently focused
to provide timely support to assist the government in financing a on accelerating growth, job creation, and poverty reduction through
temporary fiscal expansion to stimulate the economy and assisted improving the quantity and quality of physical and social infrastructure
to ensure implementation of social spending and poverty alleviation and by effectively using public, external, and private sector resources.
programs. The impact of both programs and the continuation of prudent Policy, institutional, and regulatory reforms remain vital for improving
macroeconomic management helped the government weather the global public sector governance and enhancing investor confidence.
financial crisis well. ADB is developing a new County Partnership Strategy (CPS) in the
The Fifth Development Policy Support Program (DPSP) improved coming year. Lending and TA support under the new CPS will be aligned
the investment climate through streamlined investment regulations, with the government’s new Medium-Term Development Plan 2010–
improved tax administration, reduced tax burden, and improving the
framework to increase access to credit for small and medium-sized
enterprises. In public financial management and governance, the DPSP Table 4. Indonesia: Cumulative ADB Lending
supported the government’s efforts to move toward a results orientation as of 31 December 2009
with a revised program structure for the government’s new medium- Loans Amount
term development plan, the implementation of the single Treasury Sector (no.) ($ million) %a
account, and steps toward an integrated financial management system. Agriculture and Natural Resources 99 4,047.00 15.74
,
With support from DPSP poverty alleviation and public service delivery Education 32 2,222.35 8.64
were improved, with an increase in the block grant from the budget for Energy 31 3,781.05 14.71
the poorest subdistricts under PNPM Mandiri, the government’s flagship Finance 20 3,526.10 13.72
poverty alleviation program. Health and Social Protection 13 1,068.30 4.16
The Capital Markets Development Program Cluster (CMDPC) Industry and Trade 12 645.70 2.51
improved greater finance sector diversification and resilience. As the Public Sector Management 16 4,167.22 16.21
cluster began in 2006, the nonbank finance sector’s share was less Transport and ICT 33 2,713.86 10.56
than 20% out of total finance sector assets; by 2010, an increase to Water Supply and Other Municipal
Infrastructure and Services 31 1,949.74 7.58
Multisector 16 1,586.22 6.17
Total 303 25,707.54 100.00
– = nil, ICT = information and communication technology.
Table 2. Indonesia: Economic Indicators, 2005–2009
a
Total may not add up because of rounding.
Economic Indicator 2005 2006 2007 2008 2009
Per capita GNI, Atlas method ($) 1,250 1,410 1,650 2,010 …
GDP growth
(% change per year) 5.7 5.5 6.3 6.0 4.5
Table 5. Indonesia: Project Success Rates
CPI (% change per year) 10.5 13.1 6.4 9.8 5.0 No. of Rated
Projects/
Unemployment rate (%) 11.2 10.3 9.1 8.4 … By Sector Percentagea Programs
Fiscal balance Agriculture and Natural Resources 42.6 68
(% of GDP) -0.5 -0.9 -1.3 -0.1 -1.6
Education 95.2 21
Export growth
(% change per year) 22.9 19.0 14.0 18.3 -14.4 Energy 69.6 23
Import growth Finance 77.8 9
(% change per year) 37.2 6.3 15.4 36.9 -27.7 Health and Social Protection 71.4 7
Current account balance Industry and Trade 16.7 6
(% of GDP) 0.1 2.9 2.4 0.0 2.0 Multisector 50.0 4
External debt (% of GNI) 49.5 38.0 34.1 31.3 … Public Sector Management 100.0 5
… = data not available, CPI = consumer price index, GDP = gross domestic product, Transport and ICT 95.8 24
GNI = gross national income.
Water Supply and Other Municipal
Sources: ADB. 2010. Asian Development Outlook 2010. Manila. Infrastructure and Services 52.4 21
ADB staff estimates.
World Bank. 2010. World Development Indicators Online. Total 63.3 188
By Year of Approval
1960s 100.0 2
1970s 59.0 39
Table 3. Indonesia: 2009 Loan, TA, and Grant Approvals ($ million) 1980s 61.1 54
Loans 1990s 63.9 83
Sovereign Nonsovereign TA Grants Total 2000s 80.0 10
2,184.24 – 6.30 5.00 2,195.54 ICT = information and communication technology.
– = nil. a
Based on aggregate results of project/program completion reports (PCRs), PCR validation reports
(PCRVRs), and project/program evaluation reports (PPERs) using PCRVR or PPER ratings in all cases
Cumulative Lending (as of 31 Dec 2009) : $25,707.54 million where PCR and PCRVR/PPER ratings are available.
Cumulative Disbursements (as of 31 Dec 2009) : $19,140.92 million Sources: PCRs, PCRVRs, and PPERs containing a rating circulated as of 31 December 2009.
2014 and the core areas identified under ADB’s Long-Term Strategic together with the World Bank and the Governments of Japan and
Framework. It will aim to reduce the transaction costs of designing and Australia, supported the $5.5 billion Public Expenditure Support Facility
delivering assistance. The new CPS will entail extensive consultations provided last year.
with the government, development partners, civil society, and the In addition, several development partners are supporting various
private sector. technical assistance, such as the Governments of the Netherlands and
Australia, in areas of infrastructure, education, health, and public
sector and water resources management; the Governments of the
Operational Challenges United Kingdom and Canada in areas of water supply and health; and
Given Indonesia’s size and diverse needs, past ADB-supported projects the European Union in education.
have had wide geographic and sector coverage. Looking ahead, Further partnerships are related to various trust funds ADB is
greater selectivity and a more balanced program and project pipeline implementing on behalf of other bilateral partners.
are expected to be developed. The decentralized nature of the country There was broad collaboration between ADB and many
has meant lengthy project preparation times and high implementation development partners in the emergency reconstruction support for
costs. This calls for more innovative modalities, and ADB is applying tsunami-affected areas in Aceh and North Sumatra provinces and
its Innovation and Efficiency Initiatives to foster better implementation earthquake-affected areas around Yogjakarta and Padang.
results. Partnerships with various civil society organizations, and recently
with major Indonesian universities, support knowledge exchange. Close
collaboration is pursued with banks and representatives from private
Partnership sector organizations.
ADB collaborates closely with the World Bank and the Government
of Japan in supporting the Government of Indonesia’s development
policy agenda in areas of public financial management, infrastructure
Cofinancing and Procurement
development, investment climate, and public service delivery. ADB, Cofinancing operations enable ADB’s financing partners—government
or their agencies, multilateral financing institutions, and commercial
organizations—to participate in financing ADB projects. The additional
funds are provided in the form of grants, guarantees, loans, or
Table 6. Indonesia: Portfolio Performance Quality Indicators syndications.
for Sovereign Lending, 2008–2009
Number of Ongoing Loans (as of 31 Dec 2009) 30
2008 ($ million) 2009 ($ million)
Contract Awards/Commitments 1,031.2 721.9
Disbursements 949.6 732.7 Table 8. Indonesia: Contractors/Suppliers Involved in ADB Loan
Loans at Risk (%) – 10.0 Projects, 1 January 2005–31 December 2009
– = nil. Contract Amount
Note: Totals may not add up because of rounding. Contractor/Supplier Sector ($ million)
Waskita Karya Multisector 53.36
Areva T&D - Multi Fabrindo
Table 7. Cumulative Nonsovereign Operations Portfolio Distribution Gemilang Energy 33.22
by Top Countries, 1983–2009a,b Seneca - Perwita, JO Transport and ICT 24.30
Balfour Beatty Sakti Indonesia Energy 20.95
Total ADB
Approvals Adhi Karya Persero Transport and ICT 20.49
Country No. of Projects ($ million) Brain-ZMEC Consortium Energy 14.19
China, People’s Republic of 24 2,188 PAL Indonesia Energy 11.63
India 35 2,129 B-Care JV Energy 10.00
Indonesia 15 919 Conbloc Infratecno Transport and ICT 8.76
Philippines 26 768 Hutama Karya - CTA Transport and ICT 8.59
Pakistan 24 721 ICT = information and communication technology.
Thailand 10 395
Kazakhstan 4 375
Sri Lanka 12 280 Table 9. Indonesia: Top Consultants (Individual Consultants and
Viet Nam 7 280 Consulting Firms) Involved in ADB Loan Projects,
Bangladesh 8 242 1 January 2005–31 December 2009
Afghanistan 6 198 Number of Times Contract Amount
Lao People’s Democratic Republic 1 100 Consultant Contracted ($ million)
Azerbaijan 4 66 Multi Area Conindo (Macon) 8 12.39
Nepal 4 59 Inacon Luhur Pertiwi 4 7.60
Georgia 1 25 Lenggogeni, Rifa Bestari, Tridarma Fifita 6 4.66
Papua New Guinea 1 25 Yayasan Agribisnis 1 4.19
Other DMCs 12 62 Euroconsult Mott Macdonald BV 3 4.07
Regional 38 1,895 Reka Spasia Indonesia 5 3.91
DMCs = developing member countries. Katahira and Engineers and Association 1 3.65
a
Includes nonsovereign projects processed by the Private Sector Operations Department and Surya Abadi Konsultan JV Arkonin and Ruptek 2 3.46
various regional operations departments of ADB. Regional operations departments started China Engineering Consultants Incorporation 1 3.22
nonsovereign operations in 2007.
b
Net of facilities cancelled in full before signing. Rifa Bestari, Bina Swadaya Konsultan 2 2.69
Source: Private Sector Operations Department. Individual Consultants 49 2.47
As of year-end 2009, cumulative direct value-added cofinancing From 1 January 1968 to 31 December 2009, consultants were
for Indonesia amounted to $2.5 billion for 25 investment projects, and involved in 10,945 contracts for ADB loan projects worth
$47.6 million for 57 TA projects. $4.38 billion. During the same period, consultants from Indonesia
A summary of projects with cofinancing from 1 January 2005 to were involved in 2,850 contracts for ADB loan projects worth
31 December 2009 is available at www.adb.org/Documents/Fact_ $557.70 million.
Sheets/Indonesia/cofinancing.asp. From 1 January 1968 to 31 December 2009, consultants were
From 1 January 1968 to 31 December 2009, contractors and involved in 20,087 contracts for ADB TA projects worth $2.52 billion.
suppliers were involved in 186,281 contracts for ADB loan projects During the same period, consultants from Indonesia were involved in
worth $96.29 billion. During the same period, contractors and suppliers 553 contracts for ADB TA projects worth $37.42 million.
from Indonesia were involved in 35,503 contracts for ADB loan projects A summary of procurement contracts awarded to companies
worth $10.38 billion. and consultants from Indonesia for goods and works, and consulting
services can be found at www.adb.org/Documents/Fact_Sheets/
Indonesia/procurement.asp.
Table 10. Indonesia: Top Consultants (Individual Consultants and Table 11. ADB Assistance to DMCs, 2008–2009a
Consulting Firms) Involved in ADB Technical Assistance 2008 2009 Change
Projects, 1 January 2005–31 December 2009 ($ million) ($ million) (%)
Number of Times Contract Amount Lending 10,123.92 13,230.19 30.68
Consultant Contracted ($ million) ADF, Sovereign 1,763.56 2,210.31 25.33
Organization for Individual, Spiritual, OCR, Sovereign 6,838.78 10,577.01 54.66
and Cultural Advancement 2 2.98 OCR, Nonsovereign 1,521.58 442.87 (70.89)
Moores Rowland PT/Now Mazars PT 1 1.58 Public Sector 300.00 134.30 (55.23)
Inti Hexa Semesta (IHS), PT. 2 1.02 Private Sector 1,221.58 308.57 (74.74)
PA Consulting Indonesia, PT. 1 0.74 Equity Investments 123.08 220.00 78.74
Pusat Pengembangan Agribisnis 1 0.70 Grants 808.90 1,113.48 37.65
Indokei International, PT. 2 0.57 Technical Assistance 273.20 267.20 (2.21)
Research Triangle Institute (INO) 1 0.50 ADF = Asian Development Fund, DMCs = developing member countries, OCR = ordinary capital resources.
Intersys Kelola Maju, PT. 1 0.50 a
Excludes terminated loans, equity investments, technical assistance, and grants.
Ernst and Young Advisory Services, PT. 2 0.43
Multi Area Desentralisasi Pembangun 1 0.40
Individual Consultants 197 5.08
About Indonesia and ADB Contacts
ADB Membership Indonesia Resident Mission
Joined 1966 Gedung BRI II, 7 Floor
Jl. Jend Sudirman Kav. 44–46
Shareholding and Voting Power
Jakarta 10210, Indonesia
Indonesia is the fifth largest shareholder among regional members and the sixth largest
.O.
P Box 99 JKPSA
overall.
Jakarta 10350A, Indonesia
Figures are as of 31 December 2008, before the fifth general capital increase
Tel +62 21 251 2721
process began. The process is ongoing, and the final figures are expected to be
Fax +62 21 251 2749
available by 31 December 2010. Current subscription levels are available from
adbirm@adb.org
the Office of the Secretary.
www.adb.org/indonesia
Shares held 192,700 (5.43%)
Votes 205,932 (4.65%) ADB Headquarters
6 ADB Avenue, Mandaluyong City
Marwanto Harjowiryono is the Executive Director and CJ (Stan) Vandersyp is the 1550 Metro Manila, Philippines
Alternate Executive Director representing Indonesia on the ADB Board of Directors. Tel +63 2 632 4444
Fax +63 2 636 2444
James A. Nugent is the ADB Country Director for Indonesia. The Indonesia Resident information@adb.org
Mission (IRM) was opened in 1987 and provides the primary operational link between
ADB and the government, other development partners, private-sector, and civil-society Ministry of Finance
stakeholders in its activities. IRM engages in policy dialogue and acts as a knowledge Jalan Dr. Wahidin No. 1
base on development issues in Indonesia. Jakarta, Indonesia
Tel +62 21 350 0840/381 4324
The Indonesia government agency handling ADB affairs is the Ministry of Finance. Fax +62 21 38500842
Useful ADB websites
About the Asian Development Bank
Asian Development Bank
ADB is a multilateral development bank owned by 67 members, 48 from the region and www.adb.org
19 from other parts of the world. ADB’s main instruments for helping its developing
member countries are policy dialogue, loans, equity investments, guarantees, Country website
grants, and technical assistance (TA). In 2009, lending volume was $13.23 billion www.adb.org/indonesia
(93 projects), with TA at $267.2 million (313 projects) and grant-financed projects
at $1.11 billion (64 projects). In addition, $3.16 billion in direct value-added loan Asian Development Outlook
cofinancing was generated. Over the last 5 years (2005–2009), ADB’s annual lending www.adb.org/Documents/Books/ADO/2010/
volume averaged $9.18 billion, with TA averaging $245.7 million and grant-financed
projects $855.4 million. As of 31 December 2009, the cumulative totals were Annual Report
$155.94 billion in loans for 2,206 projects in 41 countries, $5.19 billion for 315 grant www.adb.org/Documents/Reports/annual_
projects, and $3.81 billion for 6,863 TA projects. report/2009/
Depository Libraries
www.adb.org/Publications/Depositories/ino.asp
In this publication, “$” refers to US dollars.
Data are as of 31 December 2009 unless otherwise indicated. Fact sheets are updated annually in March. April 2010
