II. Country Partnership Framework (CPF) Republic of Indonesia - FY26–30 Financing and Implementation Arrangements - Financial Envelope and Knowledge - Operationalizing the CPF

Jul 19, 2026

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This annex outlines Indonesia’s Country Partnership Framework for FY26–30, specifying how the World Bank Group will finance and implement development priorities. It details IBRD indicative lending levels, IFC investment exposures and advisory services, and MIGA’s guarantee approach across energy and financial access for MSMEs, including women-owned enterprises. It also describes a knowledge agenda that addresses informality, tax constraints, jobs and growth policy reforms, and sector diagnostics. Implementation guidance covers scaling, measurement and evaluations, readiness filters, one WBG sequencing, and selectivity based on jobs and other outcome scorecard verticals, aligned with national development and external loan planning.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages5

Reading Time13 min

Financial Envelope and Knowledge

IBRD financing approach

IFC investment portfolio and advisory

MIGA guarantees and pipeline

Knowledge products and analytics

Operationalizing the CPF

Scale, replicability, and impact

Selectivity filters

Business planning process

Public Disclosure Authorized Public Disclosure Authorized II. COUNTRY PARTNERSHIP FRAMEWORK (CPF) REPUBLIC OF INDONESIA: FY26–30 FINANCING AND IMPLEMENTATION ARRANGEMENTS A. Financial Envelope and Knowledge The World Bank portfolio in Indonesia consists of 35 active projects (including recipientexecuted trust funds), with net commitment of $10.1 billion. The proposed CPF implies an indicative lending IBRD financing package of about $3 billion annually. The CPF adopts a flexible approach to lending and will allow a fast adjustment of the program depending on government plans. IBRD lending would depend on country demand, progress with reforms, Indonesia’s overall performance during the CPF period as well as IBRD’s financial capacity. As of March 2026, IFC has an investment portfolio with a total of $1.6 billion (of which $1.4 billion is outstanding). IFC’s biggest exposure is in financial markets (68 percent), followed by manufacturing, agriculture, and services (16 percent), infrastructure (9 percent), and funds and disruptive technology (7 percent) . IFC’s Advisory Services portfolio stood at $15 million, including regional and transactional advisory. During the CPF period, IFC’s annual long term financing, including private capital mobilized, are expected at around $1 billion. However, this will depend on market conditions, client demand and successful execution hinges on the government's commitment to reducing barriers to private investment. MIGA’s outstanding exposure in Indonesia include guarantees in the energy sector. This includes support for a 47 MW hydropower project and guarantees issued to support tariff payments for seven renewable energy projects. The MIGA pipeline includes potential guarantees in energy, finance, infrastructure, and other sectors. The agency will build on the experience of working with PLN to support additional projects in the energy space. In the financial sector MIGA is working with a state-owned bank to support access to finance for MSMEs, with a focus on women-owned MSMEs. MIGA will seek to work with other SOEsto mobilize commercial financing using WBG guarantee instruments. The CPF will leverage the WBG Knowledge Compact through ongoing collaboration with the Knowledge Advisory Team (KAT), the WBG Academy, as well as through advisory and analytics. From the onset, the CPF was informed by the core analytics, and benefited from dialogue with KAT on jobs, agribusiness, forestry and governance—an engagement that will continue during implementation. Several key knowledge products have been developed to address knowledge gaps related to CPF outcomes: the Informality Report addresses obstacles to formality and job quality; the Tax report addresses drivers of low revenues; the Jobs and Growth report covers the competition-focused policy reforms needed to enable productive growth and better, more remunerative formal jobs, complemented by the Indonesia Services report that explores the interlinkages between trade and competitiveness. The new Country Private Sector Diagnostic, planned for publication in early FY27, focuses on enabling reforms that can unlock private investment in Commercial and Industrial Solar PV Distributed Generation, Temperature Controlled Logistics and Data Centers. The FSAP provides a comprehensive, independent assessment of Indonesia’s financial sector, focusing on its stability, resilience, and capacity to support sustainable economic growth and development. This comprehensive knowledge agenda will inform and strengthen reform implementation in support of the CPF outcomes. B. Operationalizing the CPF Scale, replicability, and impact. The CPF period will aim to scale and replicate what works, building on the experience of implementation of the current portfolio and future evaluations. The stepped-up focus on measurement and evaluations will inform these choices. The preparation of new operations will aim to increase readiness for implementation, by adopting “re

FAQs

What is the indicative IBRD financing package under the CPF for FY26–30?

The CPF implies an indicative lending package of about $3 billion annually for IBRD financing.

How does IFC exposure and advisory support the CPF period?

IFC’s largest exposure is in financial markets, and its advisory services portfolio is described as including regional and transaction advisory; long-term financing during the CPF period is expected at around $1 billion, contingent on market and execution conditions.

What implementation mechanisms does the CPF use to scale results?

The CPF emphasizes scaling what works, increased measurement and evaluations, readiness filters developed with the government, and deploying One WBG initiatives sequencing IBRD, IFC, and MIGA interventions to maximize development impact.

Jul 19, 2026

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