A technical mission from the Jeddah-based Islamic Development Bank visited Indonesia during the period 20-30 September 2010 to embark on a strategic framework that will lay out the partnership and cooperation between the Republic of Indonesia and the Islamic Development Bank Group. The mission met with officials from BAPPENAS, the Ministry of Finance and other stakeholders and conducted five workshops in Jakarta as well as in three locations namely Palembang, Pontianak, and Manado. On the basis of the joint IDB-ADB-ILO diagnostic study of Indonesian economy, the IDB Group launched a wide-ranging consultation process with stakeholders under the overarching theme of ‘Harnessing the Regional Potential’ to formulate multi-sector and areas-focused strategy aimed at mainstreaming Islamic finance, education and skills development of the Indonesian workforce, enhancing the growth potential of agriculture and rural areas, infrastructure and private sector in the Sumatra, Kalimantan and Sulawesi regions.

The outcomes of the regional consultation, which formed the basis for developing ‘Member Country Partnership Strategy (MCPS)’, were presented in the national workshop held in Jakarta on 30 September. The workshop was attended by high ranking government officials, representatives of the donor community, leading bankers and eminent personalities from the business community and civil society. The participants corroborated the growth multiplier elements of the MCPS multi-sector and area focused programs. This is for the first time that a multilateral development institution has centre-staged addressing regional disparities which is the core theme of the RPJMN (2nd Medium term Development Plan 2010-14).

The Jeddah-based IDB will also mobilize resources from the donor agencies as well as raise funds from the capital markets in the Gulf region for PPP-based investments in the infrastructure sector in the Indonesian economy.