The Asian Development Bank (ADB) has granted a USD 500 million policy-based loan to Indonesia under the third phase of its Competitiveness, Industrial Modernization, and Trade Acceleration (CITA) program, aiming to boost competitiveness, facilitate trade, and spur green growth. This latest installment builds upon earlier efforts (launched in 2021 and 2023) that introduced reforms such as an online licensing platform, a national logistics plan, and streamlined trade processing. Key features now include the automatic granting of permits via upgraded digital systems, tax incentives for electric vehicle industries, and expanded support for micro, small, and medium enterprises (MSMEs) through incubators and a national survey to assess their potential.
Beyond mere economic growth, the program emphasizes inclusive development and environmental sustainability. Under CITA, Indonesia is promoting gender equality and financial inclusion by endorsing the Women Entrepreneurs Finance Code, encouraging banks to lend more to women-led enterprises. Sustainable procurement policies have also been introduced to favor MSMEs and women-owned firms. All this aligns with Indonesia’s Vision 2045 and its medium-term development plan (2025–2029), positioning the ADB’s support as central to the country’s strategy to become a high-income, competitive, resilient economy.
