The Asian Development Bank (ADB) has approved a $500 million policy-based loan to support Indonesia’s human capital development reforms in education, skills development, health, and social protection systems. This funding represents the third subprogram of the Boosting Productivity through Human Capital Development Program, which focuses on institutionalizing reforms initiated under the previous two subprograms approved in 2021 and 2023. While the first subprogram established regulatory frameworks and pilot initiatives, and the second expanded their implementation, the third subprogram integrates these reforms into national systems to enhance labor productivity and support sustained economic growth.
ADB Country Director for Indonesia, Bobur Alimov, emphasized that sustainable growth in Indonesia relies on investing in people. By institutionalizing reforms that improve education quality, expand healthcare access, and strengthen social protection, the program aims to build a more productive and inclusive economy where no one is left behind. Key reforms include expanding preventive health coverage to breast and cervical cancer screenings and anemia prevention for adolescent girls, empowering women to access healthcare safely, and enhancing health insurance measures.
The program also strengthens workforce development through the pre-employment card program, which has trained over 18 million people and now includes content on green skills and artificial intelligence. A new digital career guidance platform matches graduates with job opportunities, while 15 additional Sustainable Development Goals centers are being established in partnership with universities. Public universities are mandated to prevent and address gender-based violence, and technical and vocational education coordination teams have been set up in 63% of Indonesia’s provinces to better align training with labor market needs.
Fiscal reforms under the program include performance-based transfers that align local spending with national priorities, guided by the National Single Social and Economic Data (DTSEN) system for accurate social assistance targeting. The program aligns with Indonesia’s Vision 2045 and the National Medium-Term Development Plan 2025–2029, as well as ADB’s country partnership strategy for Indonesia, 2025–2029, advancing priorities in digital transformation, resilience, and empowerment.
Founded in 1966 and owned by 69 members—50 from Asia-Pacific—ADB is a leading multilateral development bank supporting inclusive, resilient, and sustainable growth across the region. Through innovative financial tools and strategic partnerships, ADB works with members to address complex challenges, transform lives, build quality infrastructure, and safeguard the environment.
