Indonesia Compact Contributes to National Priorities and Generates Innovations in Development


JAKARTA – (ACN Newswire) – The Indonesia Compact – the Indonesian and US Government partnership program to reduce poverty through economic growth – recently completed its final phases of implementation. Five years since initiation, the Indonesia Compact has contributed to National Priorities in key areas; Green Prosperity, Reduction of Stunting and Procurement Modernization, and continues supporting many innovations in development.

“The success of the Indonesia Compact is evident in the various projects that have been integrated into the National Priorities. The strategic values and innovations that the Indonesia Compact has generated are valuable lessons and models for the government and other development partners,” said Minister of National Development Planning / Head of BAPPENAS Bambang Brodjonegoro at the closing ceremony of Indonesia Compact in Jakarta.

The Indonesia Compact has developed a stunting reduction model that integrates community empowerment, strengthening health services and behavior change campaigns in support of the national target to reduce stunting to 28% by 2019. Through the Community-Based Health and Nutrition Project to Reduce Stunting (PKGBM), the Compact reaches 2 million toddlers in 11 provinces, 64 districts and 5,700 villages. More than 30,000 health workers have been trained in nutrition, sanitation and monitoring/evaluation, and the national nutrition campaign has reached more than 48 million people. Compact Indonesia has succeeded in strengthening the government’s commitment from the village to the national level and has worked across sectors to handle stunting.

The Indonesia Compact’s investment through the Green Prosperity Project has contributed to reducing greenhouse gas emissions by up to 1 million metric tons per year, in line with National Action Plan for Greenhouse Gas Emission Reduction. This has been done through various programs, such as the development of 12.3 MW total renewable energy in 11 provinces, the restoration of 16,580 hectares of peatland, sustainable farming involving 121,143 farmers, replanting 2 million trees and participatory land use planning in 40 districts that contributes to the One Map Policy. Various innovations have been generated, such as development of village electricity company managed by the private sector and community. All the lessons learned from these projects are collected and disseminated to key stakeholders to be used as reference to green development.

Through the Procurement Modernization Project, the Indonesia Compact supports the government’s procurement reform agenda. The project has established a capacity of 1,590 procurement professionals, strengthened procurement institutions, with 43 Procurement Services Unit (ULP) becoming permanent and 30 made Centers of Excellence, as much as IDR 30.3 billion has been saved through procurement contract catalogs, and development of a Procurement Information Management System (PMIS) which has been adopted by Procurement Service Units and the National Public Procurement Agency (LKPP). This project has been the government’s largest investment in its effort to reform and become more transparent, accountable and professional.

Vice President and Secretary to the Board of Millennium Challenge Corporation (MCC) Jeanne Hauch, who came to Indonesia for the Indonesia Compact closing events, took pride in the achievements. “The MCC partnership with the Government of Indonesia has introduced new models and systems, developed to suit the needs of the Government of Indonesia and its people – and we are delighted to see firsthand the great work being done during our team visit to Lombok,” said Jeanne Hauch. “We are proud of the results achieved and are looking forward to seeing how the Indonesian people continue this success.”

About Millennium Challenge Account – Indonesia (MCA-Indonesia)

MCA-Indonesia is the implementing entity of the Compact Grants from Millennium Challenge Corporation (MCC), which supports US Strategic Partnership with Indonesia. MCA-Indonesia aims to reduce poverty through economic growth, and manages the following main projects: (1) Green Prosperity, (2) Community-Based Health and Nutrition to Reduce Stunting, and (3) Procurement Modernization. See

About Millennium Challenge Corporation (MCC)

MCC is an innovative and independent agency of the US government, which aims to help alleviate poverty globally. Formed by the US Congress in 2004, MCC has distributed Compact Grants worth US $ 11.2 billion for 27 countries committed to good governance, economic freedom and investments in their citizens. Compact Grants are competitive, meaning that the candidate countries must compete in a transparent selection process.

MCC holds the principle of country-led solutions and country-led implementation, so that the countries that receive the grants have the discretion and authority to identify problems and solutions, and to develop and implement its program. See and

Please contact:
Ismet Mohamad Suhud, Ministry of PPN/BAPPENAS
Head of Public Relations and Information, +62 81288767633
Mia Fitri, MCA-Indonesia
Director for Communications and Outreach, +62 8128224393

Topic: Government
Sectors: EnvironmentDaily NewsASEAN
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