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Country Development Cooperation Strategy

Language: English | Indonesian

This Country Development Cooperation Strategy (CDCS) outlines the U.S. Agency for International Development (USAID) development engagement with Indonesia in the context of its democratic consolidation, growing economy, rising global leadership and remaining development challenges. The CDCS supports the goals and objectives of the Government of Indonesia (GOI) medium- and long-term development plans (RPJMN 2015-2020 and RPJPN 2005‐2025) and Indonesia’s long-term aspirations to be “self-reliant, advanced, just, and prosperous.”

The overall goal of U.S. Government (USG) assistance is to support Indonesia realize its full potential as a stable, tolerant democracy that contributes to regional security, global economic growth, and addressing shared challenges, such as emerging pandemic threats and violent extremism. A core feature of USG assistance is the promotion of a development path that mobilizes increased domestic resources and expertise. The U.S.- Indonesia development partnership is evolving as Indonesia emerges as a regional leader promoting a  rules-based order in the Indo-Pacific region.

A Changing Partnership

Despite the complex economic and political challenges, particularly in the aftermath of the Asian Financial Crisis in 1998,  Indonesia has achieved impressive development progress and experienced a tremendous transformation over the past 50 years. USAID partners with a wide range of actors, including GOI, non-government organizations (NGOs), civil society, and the private sector to support Indonesia achieve its development objectives. Today, Indonesia is a rising democratic economic power, and is an active member in the Asia‐Pacific Economic Cooperation (APEC) fora, Association of Southeast Asian Nations (ASEAN) and the G‐20.

The U.S.- Indonesia development cooperation has evolved from traditional development assistance to the provision of technical assistance and innovative tools to address development challenges, particularly through private sector engagement and the utilization of science and technology. USAID mechanisms are designed to strengthen Indonesian systems and institutions, mobilize domestic resources, leverage the private sector and “crowd” in new sources of financing.

Due to its  democratic and economic advancement over the past two decades  Indonesia has emerged as a regional leader and global voice. Although economic growth exceeded 5% annually over the past five years, approximately 28 million Indonesians still live below the poverty line. Indonesia still struggles with fragile institutions, endemic corruption and intolerance - , all priorities for the U.S.-Indonesia partnership. Indonesia is a growing global presence with increasing global clout, but has yet to fully realize the positive benefits of democratization and economic growth. Indonesia is also a key partner to the U.S. in enhancing the global prosperity, security and peace.

USAID assistance is designed to support Indonesia on its  “Journey to Self-Reliance.” USAID defines “self-reliance” as a country’s ability to plan, finance and implement solutions  address its own development challenges. USAID shares, and our activities support, the GOI objective, stated in their Medium Term Development Plan, that Indonesia is “a self-reliant, advanced, just and prosperous nation”.  Our partnership with Indonesia, as well as with other partners in the region, ensure Indo-Pacific remains free and open, promote market-based economies, support good governance and, through supporting their journey to self-reliance, insulate sovereign nations from external coercions.

This CDCS guides USAID strategic engagement in Indonesia to address key development challenges, take advantage of new opportunities to leverage resources and support Indonesia’s medium-term and long-term aspirations. The CDCS also ensures USAID activities support the GOI on its journey to self-reliance and strengthen Indonesia as partner in advancing  a free and open Indo-Pacific.

Our Strategic Framework

The goal for the strategy is: “A stronger U.S.-Indonesia partnership advancing mutual prosperity and security.” The goal statement reflects the strong commitment to partnership between the U.S. and Indonesia. Partnership is a key cross-cutting theme for the strategy and a critical implementation modality and mechanism for project activities. The Goal statement also demonstrates mutual U.S. and Indonesia interests that are advanced and supported through our development partnership. 

The strategy is implemented through three Development Objectives:

  1. Democratic governance and security strengthened, which focuses on improving government accountability, combating corruption, protection of human rights, and strengthening key institutions’ ability to counter extremism.
  2. Essential human services to targeted populations improved and sustained, which aims to reduce preventable deaths of women and children, expanding access to water and sanitation, and improving the capacity of educational institutions.
  3. Global development priorities of mutual prosperity advanced, which centers on reducing infectious disease threats, enhancing environmental security and resilience, and decreasing constraints to economic opportunity.

In turn, the three Development Objectives are linked with six Cross-cutting Themes and Enablers that inform and drive all project activity approaches, modalities and mechanisms, and targeting.

  1. Governance at all levels (from national to village), in all sectors
  2. Private sector engagement and partnerships
  3. Science, technology and innovation
  4. Civil society and non-governmental organizations
  5. Poor and vulnerable populations, with a special focus on gender equality

Last updated: February 14, 2019

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