ASIATODAY.ID, JAKARTA — The Asian Development Bank (ADB) has approved a $500 million policy-based loan to further strengthen Indonesia’s competitiveness, promote green growth, and accelerate trade through the third subprogram of the Competitiveness, Industrial Modernization, and Trade Acceleration Program (CITA).
“Indonesia is committed to achieving high-income status by 2045, which requires sustained economic growth and structural transformation,” said ADB Country Director for Indonesia Jiro Tominaga, October 15, 1025.
“The reforms under CITA subprograms will help attract greater investment in green and sustainable businesses, reduce trade barriers, and empower local enterprises, particularly those owned by women.”
The program fosters an enabling environment for investments, eases trade barriers, upscales enterprises, and enhances Indonesia’s efforts to develop green industries in response to climate risks. This subprogram builds on the momentum of the previous two subprograms approved in October 2021 and September 2023.
Through subprograms 1 and 2, ADB supported the government in fostering a more competitive and investment-friendly economy to accelerate Indonesia’s recovery from the COVID-19 pandemic. Achievements included the launch of an online platform to expedite business licensing, the implementation of a national logistics plan to improve trade, and the creation of a single-window system to simplify international trade procedures.
Subprogram 3 builds on this progress by making Indonesia a more attractive investment destination, addressing trade constraints, and continuing to support micro, small, and medium-sized enterprises (MSMEs).
Key initiatives include automatically issuing licenses through an upgraded online system, promoting green growth with tax breaks for the electric vehicle industry, and strengthening small business support through a new incubator program and a nationwide census to better understand their needs and potential.
Indonesia took a significant step towards advancing gender equality and financial inclusion by being the second country to adopt the Women Entrepreneurs Finance Code, which encourages financial institutions to increase lending to women-led enterprises. Sustainable procurement guidelines were issued to promote participation of MSMEs and women-owned businesses.
CITA aligns with the Vision of Indonesia 2045 and the National Medium-Term Development Plan, 2025–2029. It is an integral part of ADB’s Country Partnership Strategy, 2025-2029 for Indonesia—particularly the strategic pathway on advancing economic competitiveness.
ADB is a leading multilateral development bank supporting inclusive, resilient, and sustainable growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet.
Founded in 1966, ADB is owned by 69 members—50 from the region. (AT Network)
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