Indonesia - Country partnership strategy progress report : chairman's summing up

60028 INDONESIA: COUNTRY PARTNERSHIP STRATEGY PROGRESS REPORT CHAIR'S SUMMING UP* Meeting of Executive Directors March 3, 2011 The Executive Directors discussed the joint IBRD/IFC Country Partnership Strategy Progress Report (CPSPR) for the Republic of Indonesia (R2011-0029 [IFC/R2011-0020]). Directors welcomed Indonesia's record of macroeconomic stability and external debt management and noted the positive levels of growth in the last few years. In particular, they cited the country's ability to weather relatively unscathed the recent global financial crisis. However, Directors noted that challenges remain, including sustaining poverty reduction, broadening growth benefits and avoiding the "middle- income trap". They urged the Government to intensify its reform efforts to strengthen the private sector environment, enhance labor force skills and address infrastructure needs, including via public and private partnerships with IFC and MIGA support. Directors noted the emerging role of Indonesia, regionally and globally, as a member of the G-20 and 2011 chair of ASEAN and its contributions to South-South knowledge transfer. They appreciated Indonesia's desire to play a greater role in the global climate change agenda and encouraged the Bank to continue providing support to the Government to meet its commitments, particularly through the coordination of policy actions and facilitation of access to grant resources. Directors agreed that the CPS remains on track and re-affirmed its central focus on strengthening Indonesia's institutions. They were encouraged by the close alignment of World Bank Group activities and the Government's own development priorities. Directors appreciated the innovative use of World Bank instruments and the strong focus on development results. They welcomed the Government's commitment to enhance governance and transparency, and noted the Bank Group's continued efforts in this area. EDs were also encouraged by the strong emphasis on gender. Some Directors highlighted the importance of addressing decentralization efforts as well as the need to closely watch for potential food and fuel price hikes going forward. Finally, Directors recognized the importance of development partners in leveraging the Bank's contributions and urged the Bank to take a leadership role in this area. *This summary is not an approved record.