What are SECO’s objectives?
The Cooperation Program has been carefully deliberated and it takes into account (1) Indonesia’s development priorities and needs, (2) Swiss interests and (3) the added-value that Switzerland can bring to the partnership. The Program fully aligns with Indonesia’s Medium-Term Development Plan and is in line with Indonesia’s post-COVID-19 economic recovery and transformation strategy, which puts a particular focus on SMEs, as well as improving competitiveness through vocational education and training.
SECO aims to assist Indonesia in overcoming remaining development challenges and becoming a more competitive, resilient, equitable, and resource efficient economy. The Cooperation Program will focus on:
(1) Effective public institutions, particularly in urban areas
SECO will assist the Indonesian government in strengthening institutional capacities at the national and the subnational levels to increase domestic revenue collection, manage public funds more efficiently, and implement effective economic and financial policies. With regard to infrastructure, SECO will support the capacities of secondary cities to prioritize infrastructure investments in the water, energy, and transportation sectors, based on data-driven analytics. SECO will support urban connectivity by promoting public transportation systems, which corresponds to the Indonesian Government’s commitment to reduce the country’s greenhouse gas emissions.
(2) Strengthening private sector competitiveness, in particular SMEs
Recognizing the importance of SMEs, SECO will continue to work towards reducing financing obstacles for SMEs and facilitate access to finance. The Program will promote women entrepreneurship, leverage fintech and digital platforms to boost SME productivity and growth. The Program will help SMEs obtain improved market access for goods and services. It will also support sustainable value-chain integration, in particular of export commodities, including palm oil. Another key factor to boost competitiveness is improving the skills of the workforce. Given Switzerland’s successful dual education system, SECO’s Program focuses on improving the quality of the vocational education system in order to develop a more skilled workforce that is able to meet market demands across different sectors. This will also enhance employability for graduates, including women.
Mainstreaming Gender and Climate Considerations
Gender equality and climate change are transversal themes, which will guide the Swiss engagement. SECO fosters gender equality, by building on existing engagements in the areas of gender-responsive budgeting and explore new avenues to reduce the gender gap through the use of digital services and new technologies. SECO also applies a climate lens when developing projects and utilizes adaptive strategies for implementation.