Economic cooperation and development programme 2025-2028

Supporting Indonesia’s transformation to a sustainable, resilient and competitive economy

As the largest economy in Southeast Asia and a member of the G20 and ASEAN, Indonesia has ambitious goals to transform its economy, as outlined in the Golden Vision Indonesia 2045 and the National Medium-Term Development Plan 2025-2029. In line with these goals, the cooperation programme 2025-2028 of the Swiss State Secretariat for Economic Affairs (SECO) aims to assist Indonesia achieve a more sustainable, resilient and competitive economy. The programme’s focus is threefold:

  1. Supporting policies and frameworks that drive prosperity
  2. Fostering competitive and inclusive human capital development
  3. Promoting sustainable infrastructure and resilient urban development

Country context

As Southeast Asia's largest economy and the fourth most populous country globally, Indonesia has demonstrated remarkable resilience and growth since the Asian financial crisis in 1998. The country has evolved from a lower-middle-income into an emerging upper-middle-income economy, with GDP per capita steadily increasing from USD 823 in 2000 to USD 4,940 in 2023. This growth has been driven by strong domestic consumption, abundant natural resources, and strategic geographical positioning within ASEAN. As a member of the G20 and the world’s seventh-largest economy by purchasing power parity, Indonesia continues to strengthen its regional and global economic influence.

More recently, Indonesia has navigated challenges such as the COVID-19 pandemic and global market disruptions with strategic resilience. The government launched stimulus packages to support businesses and safeguard public welfare, while implementing digital transformation programmes to modernise key sectors. Efforts to bolster the economy have included the Omnibus Law on Job Creation, which simplifies regulations, enhances labour market flexibility, and aims to improve Indonesia’s competitiveness for foreign investment.

Energy transition has also gained traction, with Indonesia committing to reach net-zero emissions by 2060 or earlier. The government has attracted substantial investment into renewable energy, with new solar and geothermal projects expected to help achieve the target of 23% renewable energy by 2025. The OECD also began accession talks with Indonesia in February 2024. These initiatives signal Indonesia's commitment to a more sustainable and diversified economy.

Looking ahead, Indonesia's Golden Vision 2045 aims to raise the country to high-income status by its centenary, with policies focused on innovation, infrastructure and education. However, realising these ambitions will require overcoming persistent challenges, including high poverty rates in rural and remote areas, significant income inequality, structural imbalances in the economic tissue as well as environmental and social pressures resulting from resource dependence and climate change. While recent growth in the digital economy and investment in renewable energy demonstrate the country's forward momentum, the transition to a sustainable economy is complex and will depend on structural reforms, further improving the business climate and overcoming bureaucratic hurdles. Indonesia's young, dynamic workforce represents a unique opportunity, but will require extensive skills upgrading to meet the demands of the Fourth Industrial Revolution.

Vision and priorities of the cooperation programme

Indonesia economic cooperation and development programme (PDF, 8 Pages, 2.4 MB, English)

In line with Indonesia’s Golden Vision 2045 and the National Medium-Term Development Plan 2025-2029, and in particular with President Prabowo's 8% economic growth agenda, Switzerland’s economic cooperation and development programme 2025–2028 aims to support the nation’s journey toward a sustainable, resilient and competitive economic transformation, prioritising three thematic areas:

1. Policies and frameworks that drive prosperity

Indonesia needs sound economic policies to attract investment and access global markets. Switzerland is working with the Indonesian government to develop policies that build business confidence and attract local and foreign investment. It also supports initiatives that promote market access for SMEs and the sustainable management of natural resources.

Project examples

Factsheet Public Financial Management (PFM) (PDF, 2 Pages, 690.5 kB, English)

Factsheet Sustainable Landscape Programme Indonesia  (PDF, 2 Pages, 2.1 MB, English)

Factsheet IFC Multi-Country Investment Climate Programme (MCICP) (PDF, 2 Pages, 163.3 kB, English)

3. Sustainable Infrastructure and Resilient Urban Development

Indonesia’s cities are growing rapidly and need infrastructure that can handle this growth while being environmentally sustainable, resilient and capable of delivering essential public services. SECO assists the Government of Indonesia to improve its urban planning and governance to manage infrastructure needs and public service delivery effectively. This includes supporting cities in managing population growth while focusing on sustainability and environmental protection.

Project examples

Factsheet Indonesia Sustainable Urbanisation Trust Fund (IDSUN)  (PDF, 2 Pages, 326.2 kB, English)

Factsheet Indonesian Bus Rapid Transit Corridor Development Project (Indobus)  (PDF, 2 Pages, 479.8 kB, English)

PIDG (Private Infrastructure Development Group) – InfraCo Asia

Long-term interests of Switzerland?

As the largest economy in Southeast Asia and a G20 member, Indonesia is a rapidly growing market with increasing economic influence in the region. Supporting Indonesia’s sustainable and resilient development also enables Switzerland to strengthen its economic ties with this key economic partner. Through contributions to a strong regulatory framework, improved infrastructure and the development of a skilled workforce, the cooperation programme enhances market access for companies and promotes trade and investment opportunities in sectors such as finance, sustainable infrastructure, environmental technology and innovation. Furthermore, Switzerland is actively contributing to Indonesia’s sustainable development, ultimately serving the common good.

Project Fact Sheets

Better Work (PDF, 2 Pages, 605.8 kB)

Emission Reduction in Cities ERiC (PDF, 2 Pages, 748.5 kB)

Global Eco-Industrial Parks Program GEIPP (PDF, 2 Pages, 628.1 kB)

GQSP: SMART-Fish II (Global Quality and Standards Programme: Sustainable Market Access through Responsible Trading of Fish in Indonesia II) (PDF, 2 Pages, 719.7 kB)

Indonesia Sustainable Urbanization Trust Fund IDSUN (PDF, 2 Pages, 711.6 kB)

Indonesia Financial Sector Strengthening Program IFSSP (PDF, 2 Pages, 675.0 kB)

Indonesia Bus Rapid Transit Corridor Development Program INDOBUS (PDF, 2 Pages, 710.3 kB)

Indonesia Urban Water and Sanitation Program IUWASH PLUS (PDF, 2 Pages, 631.4 kB)

Multi-Country Investment Climate Program MCICP (PDF, 2 Pages, 666.9 kB)

Meloy Fund (PDF, 2 Pages, 748.7 kB)

Public Financial Management Multi-Donor Trust Fund PFM MDTF (PDF, 2 Pages, 690.5 kB)

Renewable Energy Skills Development RESD (PDF, 2 Pages, 786.7 kB)

Skills for Competitiveness S4C (PDF, 2 Pages, 687.0 kB)

Sustaining Competitive and Responsible Enterprises SCORE (PDF, 2 Pages, 817.4 kB)

Sustainable Landscape Program Indonesia SLPI (PDF, 31 Pages, 319.4 kB)

Sustainable Tourism Development in Indonesia STDI (PDF, 2 Pages, 612.2 kB)

Sustainable Tourism Development Multi-Donor Trust Fund STD-MDTF (PDF, 2 Pages, 676.8 kB)

Sustainable Tourism Education Development Project STED (PDF, 2 Pages, 664.5 kB)

Sustainable tourism Development Program SUSTOUR (PDF, 2 Pages, 720.6 kB)

Swiss Import Promotion Program SIPPO (PDF, 2 Pages, 672.3 kB)

UNDP Green Commodities Programme National Commodity Platforms Phase II – UNDP GCP (PDF, 2 Pages, 673.1 kB)