First Connectivity Development Policy Loan

closed

The overall goal of the Connectivity Development Policy Loan (DPL) program is to assist the Government of Indonesia to strengthen the policy framework for improved national trade logistics, transportation, Information and Communication Technology, or ICT, and trade facilitation. Policy reforms supported by this operation will focus on the following pillars: i) strengthening national coordination and regulation; ii) strengthening intra-island connectivity; iii) improving inter-island connectivity; and iv) improving International connectivity (trade facilitation). The DPL to Indonesia for US$100 million is designed to assist the Government of Indonesia (GoI) to strengthen the policy framework for improved national trade logistics, transportation, and ICT and trade facilitation. In developing the operation, the Bank and the Government considered several design alternatives, including the possibility of supporting such reforms through a single multisectoral DPL. The overall focus of the INSTANSI DPL, Connectivity DPL and Financial Sector and Investment Climate Reform and Modernization Development Policy Loan (FIRM DPL) is consistent with the World Bank's Development Policy Review (2008), and they are fully aligned with the 2009-2012 Country Partnership Strategy Progress Report (CPSPR). The connectivity DPL is expected to further enhance coordination and implementation of GoI reforms in the connectivity agenda, which is critical for accelerating growth to 7 percent and beyond, and continuing improvements in social outcomes over the medium term.