Indonesia - Fourth Infrastructure Development Policy Loan Project

Page 1 PROGRAM INFORMATION DOCUMENT (PID) APPRAISAL STAGE Report No.: 58212 Operation Name Fourth Infrastructure Development Policy Loan Region EAST ASIA AND PACIFIC Sector Infrastructure (Energy, Water, Roads, PPP) Project ID P118531 Borrower(s) REPUBLIC OF INDONESIA Implementing Agency Ministry of Finance, Coordinating Ministry of the Economy, and Bappenas Date PID Prepared Updated September 14, 2010 Date of Appraisal Authorization September 28, 2010 Date of Board Approval November 18, 2010 1. Country and Sector Background The IDPL program supports Government efforts to address the infrastructure backlog that arose following the 1997 Asian financial crisis, when infrastructure investment fell from over 8.2 percent of GDP to about 3.2 percent in 2000. By 2009, infrastructure investment had risen to over 3.5 percent of GDP, but was still insufficient to meet the country