The Asian Development Bank (ADB) has approved a $500 million policy-based loan to support Indonesia’s efforts to strengthen competitiveness, promote green growth, and accelerate trade under the third subprogram of the Competitiveness, Industrial Modernization, and Trade Acceleration Program (CITA). The program aims to attract investment in sustainable businesses, reduce trade barriers, and empower local enterprises, particularly those led by women, in line with Indonesia’s goal of achieving high-income status by 2045.
The CITA program fosters an enabling environment for investment, eases trade constraints, upscales enterprises, and supports the development of green industries in response to climate risks. Subprogram 3 builds on the achievements of the first two subprograms, approved in October 2021 and September 2023, which helped accelerate post-pandemic economic recovery by launching an online business licensing platform, implementing a national logistics plan, and establishing a single-window system for international trade procedures.
Key initiatives under the latest subprogram include the automatic issuance of licenses through an upgraded online system, tax incentives for the electric vehicle industry to promote green growth, and enhanced support for micro, small, and medium-sized enterprises (MSMEs) through a new incubator program and a nationwide census to assess their needs and potential.
Indonesia has also advanced gender equality and financial inclusion by adopting the Women Entrepreneurs Finance Code, encouraging financial institutions to increase lending to women-led businesses. Sustainable procurement guidelines have been issued to promote the participation of MSMEs and women-owned enterprises. CITA aligns with Indonesia’s Vision 2045 and the National Medium-Term Development Plan 2025–2029 and forms a key part of ADB’s Country Partnership Strategy for Indonesia, particularly in advancing economic competitiveness.
ADB continues to support inclusive, resilient, and sustainable growth across Asia and the Pacific by leveraging innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard the environment.
