Indonesia: Asian Development Bank Member Fact Sheet 2017

Abstract

ADB and Indonesia have been collaborating for over 50 years. Indonesia was ADB’s founding member in 1966 and is among its largest shareholders and sovereign borrowers. Indonesia has made tremendous social, economic, and political achievements during its 7 decades of independence. The country has a stable democracy and its economy has grown fivefold since the mid-1980s, allowing Indonesia to become a middle-income country in 2004. The economy has grown at a heathy pace in recent years, despite a challenging external environment. Investor confidence in the economy has increased considerably in response to strong macroeconomic management. However, fostering more inclusive and sustainable economic growth remains a challenge. While poverty has been reduced by 40 percent over the past two decades, the absolute numbers of poor and near-poor remain a concern. Inequality and regional income disparities remain high and quality jobs are scarce. To address these challenges, the government is pursuing an ambitious infrastructure development and structural reform program. Improving the quality of education and skills are also a key priority.