Competitiveness, Industrial Modernization, and Trade Acceleration Program

Start & End Date: 2021-2022

Country/Countries: Indonesia

Multilateral Institution(s) Involved: Asian Development Bank

Even prior to the unprecedented impact of the coronavirus disease (COVID-19) pandemic, Indonesia’s economic growth trend was seen to be plateauing at 5% with risk of further slowdown. To boost economic growth, in 2019 the Government of Indonesia initiated structural reforms aimed at improving the environment for investment and trade and help firms become more productive. Seizing the crisis as an opportunity to reform and unleash the growth potential, in 2020 Indonesia’s parliament approved the landmark Job Creation Law targeting the real sector. Building on the reform priorities, the Competitiveness, Industrial Modernization, and Trade Acceleration Program aims to foster a more competitive and investment-friendly business environment in Indonesia.

The program will focus on (i) creating an enabling environment for investments, (ii) easing barriers to trade, and (iii) growing and upscaling enterprises.