Indonesia - Country Partnership Framework for the Period FY2026–FY2030 : Annex 1 - Results Framework : Intervention Logic

Overview & Synopsis

The country faces pressing challenges of insufficient job creation, constrained fiscal space, gaps in human capital and financial inclusion, infrastructure deficits, environmental degradation, and rising climate risks that hinder sustainable and inclusive growth. In the coming years, the Bank will focus on building a capable state that enables private sector-led growth by strengthening domestic revenue mobilization, enhancing expenditure efficiency, advancing state-owned enterprise reform, improving the targeting of subsidies, deepening financial and capital markets, expanding access to finance, and building resilient digital systems for transparent government services and broad-based digital transformation across businesses. It will support the generation of world-class human capital by strengthening health infrastructure and equipment, reinforcing the national health insurance system, and catalyzing private investment in the health sector to improve quality health, nutrition, and population services. It will invest in resilient, productivity-enhancing infrastructure by integrating renewable energy and energy storage technologies, improving road connectivity and access to markets, expanding sustainable transport, scaling digital infrastructure and broadband in urban and rural areas, strengthening affordable water provision, improving waste and wastewater management, and supporting flood and disaster-resilient infrastructure. The Bank will also unlock natural capital for jobs, livelihoods, and sustainable growth by supporting forest restoration and marine resource protection, promoting low-carbon and diversified agriculture with greater private sector involvement, advancing sustainably managed natural resource-based value chains, encouraging private investment in downstream manufacturing, tourism, and services, and promoting adoption of low-carbon solutions across key industries while enhancing conservation, food and nutrition security, and resilience to climate risks.