U.S. Government Provides USD 8 Million Grant to Develop Innovative Financing to Improve Economic Productivity

Jakarta – The Ministry of National Development Planning (Bappenas), Government of Indonesia, and the Millennium Challenge Corporation (MCC), a U.S. Government agency, signed a grant agreement on February 4 worth $8 million US dollars to support the Government of Indonesia’s efforts to develop a second MCC Compact grant program. When approved, the program is expected to provide solutions to the problem of limited access to finance, which has been shown to be a critical binding constraint in the Indonesian economy.

The Compact Development Funding (CDF) Grant Agreement was signed by Executive Secretary of Bappenas Mr. Himawan Hariyoga and MCC’s Deputy Vice President for Compact Operations, Mr. Jonathan Brooks.  Mr. Brooks said, “This grant agreement will allow the Government of Indonesia and MCC to continue analysis of Indonesia’s economy in order to design a compact that will benefit Indonesians. We are grateful to our colleagues in the Indonesian government for their partnership and look forward to continuing our work together.”

The CDF Grant Agreement provides funding for the Government of Indonesia to pursue baseline and feasibility studies, environmental and social assessments, and studies related to infrastructure and MSMEs, particularly women-owned MSMEs.  In addition, the Compact-2 Program will work to support the achievement of Indonesia’s sustainable development goals (SDGs).

The Millennium Challenge Corporation is an independent U.S. government agency working to reduce global poverty through economic growth. Created in 2004, MCC provides time-limited grants and assistance to countries that meet rigorous standards for good governance, from fighting corruption to respecting democratic rights. Learn more about MCC at www.mcc.gov.

For further information, please contact:

Millennium Challenge Corporation
Ministry of National Development Planning/Bappenas