The Asian Development Bank approved a 400 million USD programme to help Indonesia improve its investment climate, attract domestic and foreign investors, and enhance sustainable economic growth and social development.

According to ADB’s Public Management Economist, Rabin Hattari, the island nation needs to accelerate its structural reforms in a bid to become a broad-based economy, rather than a commodity-based one. Investments in all the sectors of the economy are needed, requiring better infrastructure and stronger governance, as well as measures to create jobs and reduce poverty.

The first phase of the programme will focus on developing a policy framework that creates an attractive business climate, expands financing options, and builds an efficient and transparent public procurement process. Specific measures include altering the percentage of foreign ownership in public private partnerships and simplifying administrative procedures for setting up new businesses.

The second phrase will implement a number of innovative measures to promote PPP investment in social development.

The German Development Bank KfW Bankengruppe will co-finance the programme with 200 million USD over four years. The programme is scheduled to run until September 2016.-VNA