In the report Indonesia: Country Partnership Strategy (2025-2029) released by the Asian Development Bank (ADB) on Thursday, October 2, it was revealed that until December 31, 2024 the total loan amounted to USD8.7 billion. Through the Country Partnership Strategy (CPS) program, ADB wants to help Indonesia accelerate inclusive, resilient and sustainable economic growth.
ADB Director for Indonesia Jiro Tominaga stated that the solid partnership between Indonesia and ADB for six decades has led ADB to assist Indonesia with the formulation of a strategy that has three focuses. First, investment in human resources. Second, accelerating economic growth. Third, increasing resilience and sustainability amid political-economic fluctuations.
"This strategy is in line with Indonesia's medium-term development plan and the eight priority missions of 'Asta Cita'. Over the next five years, ADB will focus on partnerships and innovative financing solutions to attract private capital and promote inclusive growth," Tominaga explained in a written statement on ADB's website.
Under the first focus, ADB invests in skills, health, nutrition, social protection, and inclusive demographic growth by strengthening health care for mothers, children, and the elderly; promoting equitable employment opportunities; expanding access to quality education; and optimizing social security systems.
In the second focus, ADB supports reforms that strengthen the business climate to improve the investment environment, deepen financial markets, mobilize green finance, financial inclusion, and address infrastructure gaps, while maintaining fiscal sustainability.
Meanwhile, under the third focus, ADB will support clean energy transition, modernization of the electricity grid through the ASEAN Power Grid, promotion of renewable energy, and support the national free nutritious meals program goals by increasing agricultural productivity, investing in irrigation, and strengthening distribution, logistics, and market access.
"The formulation and implementation of the CPS will involve various stakeholders, ranging from the government represented by the Ministry of National Development Planning (Bappenas), the private sector, nongovernmental organizations, and others," added ADB Indonesia Spokesperson Andri Suryo when contacted by SUAR, Friday (3/10/2025).
Network from below
Although there are three different focuses, the overall strategy has a common thread, which is to utilize organic networks from below to maximize the potential value of Indonesia's loans to ADB, which currently stands at USD 8.7 billion. It is this network that allows the implementation of ADB programs to bring real impact to the community.
Teguh Yudo Wicaksono, a lecturer at the Faculty of Economics and Business of the International Islamic University of Indonesia (FEB UIII), believes that the implementation of CPS will have an optimal impact if grassroots networks such as micro, small and medium enterprisesUMKM) are proactively involved, in addition to using existing government program platform facilities.
"The focus of the first program such as human development, may not have a direct impact quickly, but ADB can provide some kind of training or provide access to be actively involved in ADB programs," said Yudo in Jakarta, Friday (3/10/2025).
The participation of UMKM as an organic network at the grassroots, according to him, can play a greater role in driving the second and third focuses, namely inclusive economic growth and climate change mitigation.
According to Yudo, participation in the third focus is important because there is still an assumption that UMKM have no role in preventing the impacts of the climate crisis. In fact, by encouraging sustainable agriculture through cooperatives or integrated waste management, agricultural UMKM can contribute to the surrounding villages and agricultural communities.
"There are direct impacts such as active involvement in accessing inclusive growth, and there are also indirect ones such as participation through existing government programs, but triggering a positive trickle down effect for the community," Yudo concluded.
Prepare a roadmap
The launch of Indonesia's CPS 2025-2029 in early October 2025 was a follow-up to the preliminary meeting held by ADB and Bappenas as ADB's main counterpart in Indonesia in July 2025.
SUAR has sought confirmation from Bappenas Deputy for Development Finance and Investment Putut Hari Satyaka regarding the follow-up of the CPS in the short-term development agenda. However, until the time of this news was compiled, SUAR did not receive a response.
Previously, on July 23, 2025, Minister of National Development Planning/Head of Bappenas Rachmat Pambudy had received ADB representatives in preparing the continuation of the CPS 2025-2029 with a focus on inclusive growth. Rachmat expressed the Indonesian government's appreciation for ADB's attention to accelerating development in Indonesia.
"Not only is Indonesia a member, it is also committed to strengthening its strategic partnership with ADB. Although the global situation is changing, the challenges of food, energy, water, and infrastructure are still the same. We need to strengthen this partnership to jointly face the challenges of global issues," Rachmat said in a written statement on the Bappenas website (23/7/2025).
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According to him, with the limitations of the state budget, private financing for development will be very impactful to accelerate the implementation of the National Long-Term Development Plan (RPJPN) 2025-2045 and the National Medium-Term Development Plan (RPJMN) 2025-2029, especially achieving 8 percent economic growth and the elimination of extreme poverty.
"Through innovative financing schemes such as ADB's support as a strategic partner, the 2025-2029 development agenda is expected to be implemented more effectively, while strengthening the foundation towards the Golden Indonesia 2045," he said.
One of the follow-ups to the partnership between Bappenas and ADB was the launch of the White Paper "Realizing a Sustainable Business Future through Green UMKM Empowerment" in Jakarta, Tuesday (16/9/2025). The document contains a situation analysis, road map, and recommendations for strengthening the regulatory framework, expanding green financing, developing classification standards, and increasing the technological capacity of UMKM.
"The launch of the White Paper marks an important milestone in Indonesia's journey towards a green, inclusive, and low-carbon economy. Through Bappenas, the government affirms its commitment so that no UMKM is left behind in the green transition," explained Bappenas Deputy for Community Empowerment, Population, and Employment Maliki, Wednesday (17/9/2025).
As a form of UMKM assistance, the white paper is expected to be a strong blueprint for UMKM to play an important role in the growth of circular economy in Indonesia by pioneering in energy efficiency, water saving, and waste management to increase business profitability.
