Switzerland's development cooperation with Indonesia, starting in the 1960s, has evolved from humanitarian aid and technical collaboration to a focus on sustainable growth, competitiveness and effective governance.

Switzerland began its Official Development Assistance (ODA) to Indonesia in the 1960s, formalized through a legal framework for technical collaboration established in 1971. From 1976 to 1996, Indonesia was a priority country for the Swiss Agency for Development and Cooperation (SDC), which invested CHF 265.5 million in human resources development, urban planning, healthcare, and rural development. A key milestone during this period was the establishment of the Polytechnic Mechanic Swiss in 1977, one of Indonesia’s first state vocational polytechnics.

In 1992, SDC began to phase out its activities. However, Switzerland maintained a presence through SECO, supporting various initiatives, including small and medium enterprise (SMEs) assistance and sustainable forest management. After the 2004 tsunami, Switzerland allocated CHF 13 million for humanitarian aid in Aceh, focusing on reconstruction and emergency relief and has since then continued to respond to natural disasters in Indonesia.

In 2009, Switzerland reaffirmed its commitment to Indonesia by designating the country as a priority partner for SECO. This strategic shift led to the implementation of several cooperation programmes aimed at addressing Indonesia's evolving economic and social needs. From 2009 to 2012, the focus was on sustainable growth through private sector development and improved economic governance. Subsequent initiatives from 2013 to 2020 placed greater emphasis on improving competitiveness and inclusive growth, integrating themes such as environmental sustainability and gender equality. In recent years, Switzerland has focused more on addressing remaining development challenges while enhancing competitiveness, resource efficiency and effective governance, especially for SMEs.

The impact of Switzerland's development cooperation can be demonstrated by a number of success stories that show the tangible benefits of this cooperation over the years:

Efficient Public Sector (2022)

Switzerland's support helped the Indonesian Ministry of Finance implement Law No. 1 of 2022 on Intergovernmental Financial Relations, improving fiscal resource allocation to local governments and enhancing revenue collection. As a result, local governments are now better equipped to deliver essential public services, such as education and healthcare, leading to enhanced community well-being and increased public trust in government institutions.

Private Sector Competitiveness (2018-2023)

The Skills for Competitiveness Project significantly enhanced job prospects for graduates, with 97% passing competency tests and 60% securing employment. By collaborating with 293 companies, the project aligned vocational curricula with industry needs and empowered students through internships, resulting in a more skilled workforce and stronger private sector growth.

Financial Inclusion (2019)

The Inclusive Financial Services and Support Project established a network of 2.3 million agents, increasing digital financial service adoption among small and medium enterprises by 50%. This initiative also facilitated $85 million in loans for over 400 women entrepreneurs, greatly improving their access to finance and empowering them to expand their businesses.

Tourism Investment Promotion (2023)

Through the Investment Promotion in the Tourism Sector project, 45 investment leads in key tourism destinations resulted in IDR 15 billion (approximately $1 million) in committed investments. This initiative is driving sustainable tourism growth and supporting local economies while contributing to Indonesia's decarbonization efforts and enhancing the overall tourism landscape.