INDONESIA COVID-19 DEVELOPMENT RESPONSE PLAN
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Partnerships for Recovery: COVID-19 Development Response Plans 2020-21 and 2021-22
INDONESIA COVID-19 DEVELOPMENT RESPONSE PLAN
The Australia-Indonesia Comprehensive Strategic Partnership has elevated our bilateral relationship and sets
an ambitious agenda for deeper and broader cooperation across all facets of our partnership.
Indonesia is facing a major challenge from COVID-19, made more difficult by the size and density of its
population and of the archipelago itself. Health and economic impacts continue to unfold and threaten to
erode Indonesia’s hard won economic and human development gains.
Australia is supporting Indonesia to maximise the effectiveness of its efforts to tackle COVID-19 through policy
and technical advice on the health response, the expansion of social safety net programs, and on economic
stimulus and recovery strategies.
Australia and Indonesia have a long and proud history of The impact on employment, income and livelihoods will
supporting each other in times of need. We are close be extensive. With 80 million people living in poverty or
neighbours, strategic partners and friends, with a vulnerable to falling back into poverty pre-pandemic, the
commitment to deepening our engagement and working impact on livelihoods will be far reaching. The World
together to build a prosperous and stable region. We Bank estimates 24 per cent of breadwinners have
have a shared interest in combatting COVID-19 together stopped working, and of those who continued, 64 per
and will use the deep connections between government cent have reduced incomes. The Indonesian Government
agencies across our longstanding development, estimates that 5.2 million people could lose their jobs in
economic and security partnerships to do so. 2020 due to COVID-19.
COVID-19 SITUATION ANALYSIS With no unemployment benefits, workers and the
self-employed who are above the income threshold for
The virus is prevalent across Indonesia and widespread
social safety nets face an uncertain future of high
community transmission continues despite some efforts
unemployment, worsening business prospects, and
to restrict mobility and shutdown economic activity. Low
limited availability of finance to carry them through the
testing rates and coordination challenges across
crisis. Those in the informal sector (56 per cent of the
Indonesia’s decentralised government pose difficulties in
workforce) have even fewer protections. This is
implementing a response that supports health outcomes
especially the case for women, who dominate some of
and safe and sustainable economic activity. Underlying
the most affected sectors. Women’s already low
factors, including health system constraints, existing
formal-sector labour force participation (52 per cent) is
health conditions, and areas of high population density
likely to decrease.
suggest Indonesia could be susceptible to widespread
incidence of the virus over an extended period. The World Bank estimates 8 million people could fall
back into poverty due to the economic shock of the
The pandemic is severely disrupting Indonesia’s
pandemic, turning back decades of poverty reduction.
economy. Following a decade of steady GDP growth, the
Poverty rates remain variable across the country and
economy is experiencing a major contraction, with the
tend to be higher in Eastern Indonesia, including Papua
International Monetary Fund predicting negative growth
where poverty rates are three times the national
in 2020. Government financing has been sharply
average. COVID-19 will hit the vulnerable, including
impacted, creating a fiscal gap and highlighting the
women and people with disabilities, the hardest.
urgent need to widen the government’s revenue base to
fund its ongoing COVID-19 expenditure needs. Most The pandemic threatens to erode human development
micro, small and medium enterprises - the backbone of gains. With health resources diverted to COVID-19,
Indonesia’s economy (contributing 61 per cent of GDP existing challenges with communicable disease and
and generating 98 per cent of employment) - do not maternal and child health could deepen and gains made
have the capital to withstand an extended shock and on high child stunting rates could be reversed. Access to
widespread bankruptcies could occur. women’s sexual and reproductive health services will be
October 2020 1Partnerships for Recovery: COVID-19 Development Response Plans 2020-21 and 2021-22
impacted. School closures are likely to worsen low Indonesia’s request for support in mitigating the spread
learning outcomes and there is a risk that poor children of the virus. Our work in Indonesia will complement
will drop out of school to contribute to family incomes. Australia’s regional health engagement through ASEAN.
These impacts threaten the Indonesian Government’s
Through Australia’s new partnership on disaster risk
strong human capital agenda. A skilled and more
management, we are providing expert advisors to
productive workforce is needed for sustained economic
Indonesia’s COVID-19 Committee and to agencies with a
recovery and to unlock the next stage of growth.
vital role in managing the pandemic. We are also funding
The implementation of the Indonesian Government’s the WHO and UNICEF to provide expert technical
response to the pandemic, focused on social assistance support to the Indonesian Government’s response.
for the poorest and protection for business and jobs, is Australia has provided essential medical supplies
highlighting coordination challenges at the national and including non-invasive ventilators, personal protective
subnational level. Policy responses were relatively swift, equipment and laboratory supplies. To support our
but disbursement of funding has been uneven. shared commitment to the most vulnerable, Australia is
funding community organisations for preparedness and
While Indonesia has demonstrated strong community
emergency support, and to assist the Indonesian
resilience to COVID-19’s impacts, it will need to actively
Government to plan for the needs of vulnerable groups
manage threats to uphold stability, including regionally.
in village-level responses. This includes supporting
The economic hardship and societal disruption brought
efforts to ensure women’s access to sexual and
by COVID-19 could create an environment for illegal
reproductive health services during the pandemic.
activity to grow, exacerbate existing security threats and
inflame social tensions. Women are already experiencing Developing a vaccine that is safe, effective and accessible
an increased incidence of domestic violence, on top of is important if we are to emerge more quickly from this
high pre-pandemic rates. crisis. CSIRO is supporting Indonesian Government
efforts to create a local vaccine development platform.
AUSTRALIA’S RESPONSE
Australia will support equitable access to safe and
Australia has reshaped its development partnership to effective COVID-19 vaccines in Indonesia through
support Indonesia’s efforts. We will continue to do so multilateral and regional initiatives to finance, assess,
throughout Indonesia’s economic recovery, helping to deliver, and monitor COVID-19 vaccines.
build long term resilience. We will be responsive to
Our new partnership on health security will support the
Indonesia’s priorities as set by its Committee for the
government to build stronger systems to prevent, detect
Handling of COVID-19 and National Economic Recovery
and respond to COVID-19 and other public health
and in its national medium-term development plan. We
threats. This partnership and Australia’s Indo-Pacific
will focus on the most vulnerable, including women and
Centre for Health Security will help strengthen capacity
people with disabilities.
in information, surveillance and laboratory systems,
Building on the foundations of our Comprehensive national coordination and community preparedness. A
Strategic Partnership, we will work across the Australian new ASEAN-Australia Health Security Program will
Government, using our diplomatic, trade, economic, strengthen regional health security, benefiting Indonesia.
defence and security capabilities, to ensure our We are also funding research partnerships to strengthen
development efforts have the greatest impact. We have health systems and capacity using a “one health”
built deep connections between government agencies, approach across people, animals and the environment.
which we will leverage in our COVID-19 response and in
Our international health partners will be integral to our
support of our broader bilateral relationship. We will
support to Indonesia to strengthen health security
also leverage the Indonesia-Australia Comprehensive
systems and to ensure quality health services are
Economic Partnership Agreement (IA-CEPA) to
delivered throughout the pandemic. Australia’s global
contribute to our mutual economic recovery through
contribution to GAVI will strengthen and support the
trade and investment.
sustainability of Indonesia’s immunisation programs. Our
Health Security pledge to the Global Fund will support Indonesia’s
As close neighbours, Australia and Indonesia have a efforts against the key public health threats of
shared interest in managing COVID-19 transmission in tuberculosis and HIV/AIDS.
our region. We have a long collaboration in the health We will maintain our commitment to building good
sector and on disaster management, and we accelerated health foundations that underpin health security,
the commencement of new partnerships to respond to including supporting Indonesian Government programs
October 2020 2Partnerships for Recovery: COVID-19 Development Response Plans 2020-21 and 2021-22
to increase community access to water and sanitation, support at national, provincial and local government
which is vital in the COVID-19 response. We will continue levels. We will assist Indonesia to measure COVID-19
supporting nutrition specific approaches, responding to impacts at the community level, identify needs, and
President Widodo’s focus on reducing child stunting. reallocate budgets for COVID-19 response activities.
Stability Australia is working with Indonesian civil society
partners, through our gender equality and social
Australia’s long-standing essential services partnerships
inclusion programs and our partnership for justice, to
with Indonesia will support communities and the most
ensure that vulnerable groups, including women and
vulnerable to weather the shocks of COVID-19 and
people with disabilities, are able to access essential
safeguard opportunities for recovery.
services through COVID-19. We are building civil society
We are Indonesia’s largest bilateral partner in social capacity including women’s leadership to support
protection. Building on our long-standing engagement, communities to advocate for their needs and assist
we have pivoted to assist the government to rapidly government to improve accessibility. Our partners are
expand social safety net programs, a critical part of engaging on national policy reforms and supporting local
Indonesia’s COVID-19 response and recovery. Australia’s solutions for local issues. Through these programs, we
technical advice (through our social protection, will help women and vulnerable groups to access social
economic governance and World Bank partnerships) is assistance, alternative livelihoods, and domestic violence
supporting the Indonesian Government to design and and justice services.
implement expanded programs, and to explore options
As strategic partners, we share a commitment with
to address coverage gaps for people with disabilities, the
Indonesia to increase resilience and stability in our
elderly and unemployed. Systems developed through our
region through our trusted partnerships in justice,
partnership before the pandemic have been
security and disaster management. Through our
foundational to Indonesia’s COVID-19 efforts. We are
partnership on disaster risk management, we will
working at a national level on system-wide reforms and
support Indonesia’s capacity to respond to disasters
at a subnational level to support effective program
during the pandemic and strengthen our joint
delivery, ensuring that safety nets reach targeted
engagement on disaster management in the region. We
recipients and maximise intended outcomes.
will also continue to integrate climate resilient
Australia’s agricultural programs will continue to work approaches across our work.
with the private sector and small-holder farmers to help
In law and justice we are helping Indonesia’s criminal
maintain agricultural production and food security
justice system to adapt to the impacts of COVID 19
during the crisis while also safeguarding poor farmers’
including through new technology for online trials. We
livelihoods. We are helping to optimise agricultural
are assisting Indonesia to manage the health and
markets and address systemic challenges to food supply
security risks of COVID-19 in prisons. We are providing
chains. Scientific collaboration with Indonesia on food
advice to Indonesia’s election bodies on conducting the
systems and biosecurity risks is also strengthening food
2020 regional elections during the pandemic.
security.
Complementing efforts under our development
With many schools likely to be closed for an extended
program, Australia’s Departments of Foreign Affairs and
period, Australia is supporting Indonesia to maintain
Trade, Home Affairs, and Defence will continue to
quality basic education. We are Indonesia’s only bilateral
engage with Indonesia to address the changed strategic
partner in basic education. Our programs are providing
environment in our region and continue to combat
technical advice to support the implementation of new
common security challenges during the pandemic. We
policy responses, including learning-from-home
are focusing on countering the shared threats of
guidelines and preparations for safe school reopening.
terrorism and transnational crime, including
We are helping to monitor remote learning practices to
people-smuggling, cyber threats, maritime security,
inform Indonesian policy and funding decisions. Our
money laundering and terrorism financing. We will
focus is on assisting the Indonesian Government to
continue our strong bilateral and regional security
minimise learning losses and manage risks from school
cooperation, including through dialogues such as the
closures, particularly for the most vulnerable.
Sub-Regional Meeting on Counter-terrorism and
Rolling out new social protection and education Transnational Security, which we co-chair with
initiatives quickly and effectively will be a challenge. Indonesia. We are prioritising our joint commitment to
Australia is providing planning and implementation the Women, Peace and Security agenda to maximise
October 2020 3Partnerships for Recovery: COVID-19 Development Response Plans 2020-21 and 2021-22
women’s leadership in supporting community cohesion. modern economy. In addition, our infrastructure and
IA-CEPA economic cooperation programs are building
Economic Recovery
skills that meet industry needs. The Australia Awards
Australia’s flexible economic governance and World Bank program will be adapted to build the capability needed
partnerships enable us to respond quickly to Indonesia’s for Indonesia’s recovery.
needs. Our trusted advice has been critical to date in
Economic empowerment of women, people with
helping Indonesia to navigate the economic dimensions
disabilities and marginalised groups will continue to be a
of the crisis. We will continue to support Indonesia to
priority across our economic recovery efforts. We will
mitigate the economic slowdown and restore the
facilitate access to training and economic opportunities,
foundations for an inclusive and resilient economy.
support alternative livelihoods, and pursue labour law
Australia is supporting Indonesia to develop fiscal policy reform to realise the productivity improvements possible
responses to COVID-19, providing trusted expert policy through increased economic participation. We will work
advice on the design of stimulus measures to promote to challenge gender norms that constrain women’s
economic stability and investment, helping to identify economic participation and contribution.
new sources of budget finance, increasing government
Our new Comprehensive Economic Partnership
revenue through tax reform, and assisting with budget
agreement, IA-CEPA, will support our shared economic
prioritisation to fund health expenditure.
recovery through increased bilateral trade and investment.
Australia is providing policy advice to key Indonesian Increased Australian investment in Indonesia will help
decision-makers on restoring economic foundations. We create jobs and generate local economic activity and
are advising on measures to address risks to the stability government revenue for recovery. The IA-CEPA Economic
of the financial sector. We are formulating policy options Cooperation Program will provide technical advice and
to support the recovery of informal and formal other assistance to enable Indonesia to fully realise the
businesses and State Owned Enterprises. We will mutual benefits of the partnership. Australia’s Blueprint for
continue to offer advice to address binding constraints to Trade and Investment in Indonesia will help Australian
growth, including improving Indonesia’s business businesses identify opportunities in the Indonesian market.
enabling environment to attract investment and create A new Economic, Trade and Investment Ministers Meeting
jobs. We are providing advice on measures to improve will provide a forum to collaborate on global responses to
the quality of public spending. COVID-19 and to coordinate joint approaches to regional
Australia’s infrastructure programs support Indonesia’s and global economic issues.
important growth-enabling infrastructure agenda. We HOW WE WILL WORK
are helping the Indonesian Government to prioritise its
We will support Indonesia to achieve the best use of its
infrastructure spend to deliver the most productivity
resources for the most effective COVID-19 response and
enhancing outcomes while boosting employment in
recovery. Using our trusted partnerships, we will
areas hard hit by the pandemic. We are working to
continue to provide evidence-based policy and technical
mobilise additional financial institution and private
advice to ministries in real time as they make critical
sector financing for infrastructure, including by
COVID-19 response decisions. We will work together to
supporting the Indonesian Government to develop
pilot innovative solutions to COVID-19 challenges and to
quality infrastructure proposals.
build government systems for implementation. We will
The economic downturn will interrupt the long term support Indonesia to generate evidence to inform policy
human capital development and productivity and programming decisions, including through joint
improvements needed for Indonesia’s growth. Increases research and knowledge exchange, and by strengthening
in poverty and inequality will also create a drag on the enabling environment for research and development
economic growth. We will provide policy advice on skills and innovation. Australia will use the in-built flexibility of
development and poverty reduction strategies to help our programs to continually refocus our efforts. We will
Indonesia protect its investments in sustainable and work with business, civil society, research partners and
inclusive growth. We are partnering with education other international development agencies to leverage
authorities to promote the systemic change required to their expertise and finances for Indonesia’s COVID-19
improve the foundational skills critical to participate in a response.
October 2020 4Partnerships for Recovery: COVID-19 Development Response Plans 2020-21 and 2021-22
Table 1: COVID-19 Response Plan Performance Framework
Health Security Stability Economic Recovery
- Strengthened capability to prevent, - Strengthened social protection, food security - Strengthened fiscal stability (SDG 8)
Expected Outcomes detect and respond to health security and education outcomes (SDGs 1, 4, 5, 9, 10, - Strengthened foundations for an
threats, including mitigating the spread 16) inclusive and resilient recovery (SDGs
and impact of COVID-19 (SDG 3) - Communities and civil society are working to 1, 8, 9, 10, 13, 15)
- A stronger health system to maintain ensure the needs of Indonesia’s diverse - Increased economic inclusion of
access to essential health and related communities, especially the most vulnerable, women and vulnerable groups (SDGS
services (SDGs 2, 3, 6, 10) are met (SDGs 1, 5, 10, 16) 1, 5, 8, 10)
- Improved hygiene and nutrition (SDGs 2, - Indonesia and Australia partner to address - Enhanced economic partnership,
6) shared risks to stability and security (SDGs including creating opportunities for
14, 16) Indonesian and Australian businesses
and organisations to support
economic recovery (SDGs 1, 8)
- 693,000 women, men, girls and boys - Indonesia strengthens governance systems - Evidence of Indonesia promoting
Key Results provided with emergency assistance to mitigate the impact of COVID-19, economic and financial stability,
- 100 ventilators and associated medical including in social protection, education, and including economic stimulus measures
supplies provided to support treatment of law and justice - Dollars leveraged as additional
COVID-19 in Indonesia - Examples of significant policy change across resources to support economic
- Indonesia strengthens health systems, COVID-19 response and recovery priorities development
including preparedness for health - Examples of Indonesia improving evidence - Evidence of Indonesia promoting
emergencies generation and knowledge-to- policy stable and inclusive economic growth,
- Indonesia improves responses to health processes including reforms that promote a
security threats (especially COVID-19) - Evidence of policy advice and support for business enabling environment or
- 1,970,000 additional women and men agricultural productivity and market access human capital development*
have access to improved water and for food security - Evidence of Indonesia introducing
198,000 sanitation services (625,000 - 270,000 smallholder farming households reform to promote job creation
water and 105,000 respectively in 2020- increase their incomes by 30 per cent - Opportunities are created for
21) (120,000 in 2020-21) Indonesian and Australian
- Evidence of Indonesia making progress to - 55 per cent of the Indonesian population businesses/organisations in support of
prevent stunting reached with new or improved social economic recovery
protection programs - 200,000 women and other vulnerable
- Evidence of women and girl survivors of groups access economic opportunities
violence receiving services (80,000 in 2020-21)
- Evidence of women and other vulnerable - 80 per cent of investments effectively
groups participating in decision-making address gender equality issues
- Improved civil society engagement in (regardless of objective)
government policymaking and program -
delivery
- Indonesian and Australian public sector
agencies partnering to address shared risks
to stability and security
- Australia-Indonesia Health Security - Towards a Strong and Prosperous Indonesian - Indonesia Australia – Comprehensive
Supporting Partnership Society (social protection) Economic Partnership Agreement:
Investments - Indo-Pacific Centre for Health Security - Governance for Growth Economic Cooperation Program
- ASEAN-Australia Health Security Program - Knowledge to Policy programs - Australia-Indonesia Partnership for
- Australia-Indonesia Partnership in - Innovation for Indonesia’s School Children Economic Development (PROSPERA)
Disaster Risk Management - UNICEF Rural and Remote Education (Papua) - Australia-World Bank Indonesia
- Essential medical supplies - Australia-Indonesia Partnership for Gender Partnership
- WHO COVID-19 Response Equality and Women’s Empowerment - Indonesia Australia Infrastructure
- UNICEF COVID-19 Response (MAMPU) Partnership (KIAT)
- Civil Society and Red Cross COVID-19 - Support to Marginalised Groups - PEDULI - Sustainable Infrastructure Assistance
Response (social inclusion) Program
- Better Investments for Stunting - Australia-Indonesia Partnership for - Environmental Governance
Alleviation Promoting Rural Incomes through Support - Australia Awards
- Micronutrient Initiative for Markets in Agriculture - Investing in Women
- Infrastructure Grants Municipal - Grow Asia: Partnership for Indonesia’s - Indonesia Transport Safety Assistance
Sanitation Sustainable Agriculture Program
- Palembang City Sewerage Project - Australian NGO Cooperation Program - Contributing whole of government
- Water and Sanitation Hibah - Australia Indonesia Partnership for Justice 2 agencies include: Department of
- Rural Water Supply and Sanitation - Democratic Resilience Initiative Agriculture and Water Resources,
- GAVI, the Vaccine Alliance - Maritime Capability Building Initiative Department of Education, Skills and
- The Global Fund to fight AIDS, TB and - Cyber Cooperation Program Employment, Austrade
Malaria - Contributing whole of government agencies
- Contributing whole of government include: Defence, Australia Federal Police,
agencies include: Department of Health, Department of Home Affairs, Australian
ACIAR, CSIRO Border Force, ACIAR, CSIRO
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