Project profile — National Support for Local Investment Climates in Indonesia


Cowater International Inc. (61009)
2015-12-29 - 2022-12-31
Global Affairs Canada
OGM Indo-Pacific

Country / region 

• Indonesia (100.00%)


• Public finance management:
Public finance management (15111) (30.00%)
Decentralisation and support to subnational government (15112) (20.00%)
• Business And Other Services: Business support services and institutions (25010) (25.00%)
• Industry: Small and medium-sized enterprises (SME) development (32130) (25.00%)

Policy marker 

• Gender equality (significant objective)
• Environmental sustainability (cross-cutting) (significant objective)
• Participatory development and good governance (significant objective)
• Trade development (not targeted)
• Biodiversity (not targeted)
• Climate change mitigation (not targeted)
• Climate Change Adaptation (not targeted)
• Urban issues (not targeted)
• Desertification (not targeted)
• Children's issues (not targeted)
• Youth Issues (not targeted)
• Disability (not targeted)
• Indigenous Issues (not targeted)
• ICT as a tool for development (not targeted)


This project aims to increase employment and incomes for poor men and women in Indonesia by improving the investment climate and supporting business development. Working with the Indonesian Ministry of National Development Planning (BAPPENAS) and other core ministries, the project aims to address key constraints in business regulations, promote regional economic cooperation, support coordinated national support to local and regional economic development, and increase access of enterprises to business development services. The project helps the Government of Indonesia implement its local and regional economic development strategy. It trains and advises national and local government officials in regulatory reform and economic development planning that uses the approach of public-private engagement. It develops economic planning and coordination tools used by the local economic coordination forum at the national level, and provides funds for innovative local government initiatives that support enterprise development. The project also trains and advises business development service providers that support enterprises in sectors with the potential for inclusive growth.

Expected results 

The expected outcomes for this project include: (1) improved ability of national and local governments to address key constraints in business regulations and licensing that imped gender-responsive, environmentally sustainable economic growth; (2) increased capacity of local governments and enterprises to coordinate activities and sustainably connect and integrate into the regional and national economy; (3) increased ability of national-local agencies to support equitable, gender-responsive, environmentally sustainable local and regional economic development; and (4) increased access by enterprises to gender-responsive, environmentally conscious business development services.

Results achieved 

Results achieved as of March 2022 include: (1) developed and strengthened 16 business organizations as business development service providers in Gorontalo; (2) facilitated business meetings and training session to help micro-small enterprises gain broader access to domestic and international markets via e-commerce platforms. Products marketed included white pepper from Belitung and selected products such as coffee, coconut derivatives and bamboo-woven handicrafts; (3) signed seven co-operation agreements for Belitung between small and medium-sized enterprises (SMEs) and farmers with buyers and investors; (4) signed 25 agreements between 123 SMEs and local governments of three districts in Bali (Tabanan, Klungkung, and Buleleng) with eight investors and buyers; (5) empowered women by promoting and supporting entrepreneurship. Provided online learning and mentoring sessions, technical help, digital and online marketing, and business management training; (6) adopted local economic development initiatives in ten districts and cities in Gorontalo and South-East Sulawesi’s regional planning documents; (7) local governments have budgeted around 31 billion Indonesian rupiah for local economic development pilot replication studies; and (8) signed three co-operation agreements. The first (between South Konawe District and the city of Kendari) to get beef cattle, vegetables, animal and poultry feed. The second, between North Konawe and the city of Kendari, to improve tourism. The third, between Pohuwato and North Gorontalo, related to inter-island and inter-provincial cattle trade.

Budget and spending 

Original budget $0
Planned disbursement $0
Country percentages by sector
Type of finance Aid grant excluding debt reorganisation
Collaboration type Bilateral
Type of aid Project-type interventions
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