Competitiveness and Sustainability: Switzerland’s Economic Cooperation and Development Program with Indonesia 2021-2024

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Press releases, 25.02.2021

Switzerland and Indonesia renewed their development partnership on February 25, 2021, by jointly launching Switzerland’s Economic Cooperation and Development Program with Indonesia 2021-2024. The Swiss State Secretariat for Economic Affairs (SECO) will provide CHF 65 million in grant funding to support Indonesia in becoming a more competitive, resilient, and equitable economy. The Program 2021-2024 is a testament to the strong partnership between Switzerland and Indonesia, which are celebrating 70 years of diplomatic relations this year.

The Cooperation Program 2021-2024 focuses on two main areas: (1) strengthening private sector competitiveness and (2) fostering effective public institutions, particularly in urban areas. Special attention will be given to small and medium-sized enterprises, as they are the main drivers of job creation. In line with Indonesia’s development priorities, the Swiss technical assistance will focus on vocational education and training, tourism, public financial management, as well as sustainability, including in commodity sectors such as palm oil and other export-oriented commodities. Gender equality and climate change are transversal themes, which will guide the Swiss engagement. The Program focuses on high quality technical assistance, particularly in sectors in which Switzerland has proven expertise and where Indonesian demand is highest.

Indonesia has been a priority country for Switzerland’s development cooperation since the 1970s. Over time, the two countries have become close economic and political partners, celebrating 70 years of diplomatic relations this year. This close partnership has, inter alia, led to the conclusion of the Comprehensive Economic Partnership Agreement (CEPA) between the EFTA States and Indonesia, which will be subject to a popular vote in Switzerland on March 7, 2021. The CEPA will substantially improve market access conditions on both sides, deepen bilateral economic relations in a manner consistent with the objective of sustainable development and further strengthen economic development cooperation.

The Economic Cooperation and Development Program 2021-24 builds on the results and lessons learned from SECO’s previous work and is closely aligned with Indonesia’s National Medium-Term Development Plan 2020-2024, as well as the UN’s 2030 Agenda for Sustainable Development.

The Program is also in line with Indonesia’s post-COVID-19 economic recovery and transformation strategy, which puts a particular focus on small and medium-sized enterprises as well as improving competitiveness through vocational education and training.

Through its Cooperation Program, Switzerland is committed to assist Indonesia in addressing pandemic-related economic challenges. SECO’s technical assistance in the area of public financial management will support Indonesia in using public funds more efficiently and help develop reforms that support a sustainable and inclusive economic recovery.  Moreover, mobilizing private financing to close the infrastructure gap is more urgent than ever as there are fewer public resources available. To this end, the Program will continue to support Indonesia in preparing solid infrastructure projects that will be able to leverage much needed private investment. SECO will also assist Indonesia in upgrading policy frameworks to spur investments and in developing sustainable value chains, particularly in the tourism sector, which was hit hardest by the pandemic.

Through partnership in these areas, Switzerland’s Economic Cooperation and Development Program 2021-2024 will support Indonesia realize its full economic potential and move towards a more competitive, resilient and equitable economy, and at the same time further strengthen the rich and constructive 70 years of diplomatic relations between Switzerland and Indonesia.

Contact for media inquiries:

Vidia Panna (Ms.)
Media Officer

Embassy of Switzerland in Indonesia
Mobile: +62811-1062-8550
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Parulian Silalahi (Mr.)
Head of Public Relations Bureau
Ministry of National Development Planning/Bappenas
Mobile: +62818-770-810
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