Indonesia First Development Policy Loan

1
Adaptable Tools Investment Development Policy
Lending
2
IndonesiaFirst Development Policy Loan
Wolfgang Fengler Senior Economist, World Bank
Jakarta Office
3
Indonesia Growth, Crisis and Recovery
4
World Bank Net transfers
5
2003/04 The opportunity

• Post IMF EPP (White Paper)
• A new CAS Focus on Governance Program lending
• A new government

6
The CAS and DPLs
7
Challenges

• Anti-conditionality movement
• Anti-Debt-Lobby
• Anti-Corruption Lobby

8
Overcoming Conditionality

• The DPL is based on a government program
• Government and World Bank selected and indicators
  jointly
• Single tranche operation

9
Indonesia Needs to Invest in development...
Development spending Share of GDP
10
... and the DPL is low cost
11
Addressing the roots of corruption

• DPL-triggers focus on public financial management
• Fiduciary assessment specifically carried out for
  the loan
• TA financial management project presented jointly
  to the board
• These reforms, while seemingly technical,
  represent a broad attack on the very roots of
  corruption in Indonesia (Andrew Steer)

12
Delivering in 80 days during Government Transition

• September 20 Presidential Elections
• September 30 Concept Review ROC meeting
• October Pre-Appraisal
• October 20 Inauguration of new government
• November 8 ROC decision meeting
• November 10 11 Appraisal
• November 11 Negotiations
• November 22 Distribution to the board
• December 21 Board meeting
• December 23 Disbursement