Indonesia yet again saw significant growth of 5% in 2016, thanks to solid monetary and fiscal policies, and stable household consumption. The government has started to implement reforms to improve the investment climate and boost growth. These include expanding investment in public infrastructure and opening up new sectors to private and foreign investment by reducing the layers of government regulations. The government realises that improving the rule of law is essential to foster continuous growth and ensure stability. In 2016, President Widodo introduced the first legal reform package. The anti-corruption commission stepped up its efforts to decrease impunity for corruption. The political power play heading towards the 2019 presidential elections has commenced. An issue of concern is the growing influence of certain radical groups in society, as manifested in the lead up to the process for alleged blasphemy against Governor Purnama of Jakarta and in the narrowing of space for minorities (e.g. LGBTI). Sadly, the country saw another round of death penalty executions. The risk of terrorism remains relatively high due to recidivism and returning foreign terrorist fighters, among others. Jakarta experienced a terrorist attack in January 2016.

Featured project

Vegetable Production and Marketing with Impact (VEGIMPACT) programme in Indonesia

Indonesia’s vegetable production is dominated by small farmers with limited access to expertise, capital and supply chains. The Dutch-financed Vegetable Production and Marketing with Impact (VEGIMPACT) programme is working to the benefit of these small farmers, by increasing production profitability and improving marketing operations. Implemented in collaboration with public and private sector groups, the programme aims to promote good agricultural practices and develop new value chains that will have a lasting impact on nutrition, food security and private sector development. As well as farmers, extension agents, researchers and traders are also being trained to replicate and expand learning from the programme across Indonesia.

Key results of the embassy in Indonesia


Indicator Score Progress

Number of people reached with sustainable access to and use of improved sanitation facilities

1.5 million On track
More than 1.5 million people since 2012
Interpretation of the Embassy results in the context

Due to the institutional support provided by the embassy-supported Urban Sanitation Development Project (USDP), some 458 towns and districts (of the 482 covered by the project) now have good quality, pro-poor sanitation plans drawn up.

Indonesia's ambition is to achieve universal coverage by 2019. The substantial support provided by the Netherlands, be it in building the capacity of institutions to plan and budget for sanitation interventions or providing direct technical advice or support to hygiene promotion and demand creation, is greatly appreciated by the relevant ministries and participating local government partners. Close monitoring of progress is important, however, as sanitation is still a relatively low priority within local government institutions. It remains to be seen, therefore, whether the institutional support provided by the USDP will be fully internalised and whether this support will result in actual investments and improved service delivery in the next two years.

Number of people in Jakarta benefiting from reduced flood risk

2.5 million Progress, not on track
More than 2.5 million people are thus far benefiting from reduced flood risk. Ongoing emergency works are expected to result in more people being protected and higher safety levels in the short to medium term.
Interpretation of the Embassy results in the context

In order to increase the protection (flood safety levels) of 2.5 million people and provide similar sustained protection to another as yet unprotected 1.5 million people, urgent action is required to complete the planned emergency works, halt land subsidence, improve water quality through improved sanitation and urgently take awaited decisions on more long-term flood protection measures.

As agreed under the trilateral MoU signed in 2016, Dutch and Korean Technical Assistance has meanwhile been mobilised to provide support in preparation of a Final Investment Decision for long-term flood protection measures by 2018. The Netherlands is acting, and is appreciated by the Indonesian Government, as a trusted adviser in the fields of flood protection and coastal restoration, both in Jakarta and in other cities, such as Semarang and Pekalongan.

Food & Nutrition Security

Indicator Score Progress

Number of farmers with increased productivity and income

10,200 On track
Number of farmers reached
Interpretation of the Embassy results in the context

Thanks to the horticulture programme VEGIMPACT, the number of farmers with increased productivity and income has grown from 7,350 in 2015 to 10,200 in 2016, achieving the programme's objectives, i.e. improving vegetable production and marketing for small farmers in Indonesia. With these objectives, VEGIMPACT contributes to increased food security and private sector development in Indonesia. VEGIMPACT activities (2012 – 2016) include the development of Product Market Combinations, strengthening the potato sector, the development of permanent vegetable production systems, the transfer of practical knowledge on agronomy to farmers and extension agents, and the reduction of occupational health risks in vegetable production. A large part of the activities focuses on the practical training and capacity building of farmers and other stakeholders.

Number of fishermen and hectares

200 / 4 Progress, not on track
200 fishermen and 4 hectares fish ponds
Interpretation of the Embassy results in the context

Over the coming two years, the focus will be on aquaculture. The project aims to improve the enabling environment and institutions. Aquaculture ponds, broodstock development and food production are highly dispersed, while knowledge and the dissemination of new knowledge and techniques are falling short. This is the main reason why capacity building is the core of this project. The project therefore aims to improve the viability of the Indonesian fisheries sector and strengthen its compatibility and performance in contributing to economic development, poverty alleviation and food security. The project aims to increase the availability and accessibility of safe and good quality fish and fish products.

Security & Rule of Law

Indicator Score Progress

Numbers of women and girls with access to justice for domestic violence

185 Progress, not on track
185 female victims (in 6 provinces: Medan, NTB, Sulteng, Makassar, Semarang, and Jakarta)
Interpretation of the Embassy results in the context

The situation for women is very difficult, especially in provinces like Papua. The patriarchal nature of society means that women neither know their rights nor can claim them. Support through the LBH APIK (Asosiasi Lembuya Bantuan Hukum Apik Indonesia) schools is on a very local level and, therefore, limited in scope. The local emphasis does, however, ensure that the support is accessible and effective. In 2016 with Dutch funding, local legal aid organisation LBH APIK finalised the creation of 18 community schools of justice, through which local women can learn about their rights and how to claim those rights. In total, 162 paralegals have been trained to assist these women in obtaining government services, heritage rights, etc. They also help women to report cases of (domestic) violence to the relevant authorities; 185 gained access to justice to report domestic violence. The organisation's lawyers can assist in legal proceedings, if necessary.

Increased number of available joint community tension management mechanisms

39 On track
Number of community policing forums
Interpretation of the Embassy results in the context

The Netherlands supports the International Organisation of Migration (IOM) in assisting the Indonesian Police with community policing in the provinces of Papua, Papua Barat and Maluku. The community policing forums that have been gradually created since 2015 aim to improve relations between the police and members of the community. In these provinces, the population's trust in the police is traditionally low. Regular and positive communication has contributed to improved relations, as well as improved joint management of local conflicts. Despite the limited scale of the pilot project, it has had a wider impact. For example, the IOM has contributed to the national police training curriculum on community policing. Furthermore, often at the request of local communities, the Indonesian Police and local communities have commenced replication of the approach in at least 172 other villages. Community policing has also become one of the pillars of the Indonesian Police's working strategy.

Background & future

Interpretation of the results in context

Security and Rule of Law
The roll-out of the LBH APIK programme in the Province of Papua was delayed due to its complex (geographical) context, among other reasons. The schools in Papua became operational at the beginning of 2017. Due to delays in establishing the International Development Law Organisation (IDLO) office in Indonesia, the roll-out of the rule of law programme has progressed slower than planned. Some activities commenced in 2016, but the majority will commence in 2017. The results above, therefore, do not yet reflect the IDLO Rule of Law programme activities.

Food Security
Training and reaching out to farmers is part of the VEGIMPACT project but a good connection to markets like the product/market combinations is essential to stimulate farmers' interest in new ways of working. This is why the installation of product/market combinations was an important part of the project. Farmers were certain that they could sell their products and that by working together they could produce a constant stream of good quality vegetables.

Thanks to the support provided by Simavi (SHAW) and SNV (STBM Lampung), more than 1.5 million people in East Indonesia have been reached with sustainable access to sanitary facilities since 2012, in line with expectations. Partially due to an elaborate national review of the earlier National Capital Integrated Coastal Development (NCICD) Master Plan (integrating land reclamation) and the election of a new governor of Jakarta, formal decision making on the way forward, in relation to long-term flood safety measures and the establishment of the envisaged NCICD programme organisation, was substantially delayed in 2016.

Glimpse into the future

Security and Rule of Law
The rule of law programme with the IDLO will be extended to maximise the impact of the programmes that are commencing. The community policing programme with the IOM will also be extended (on a smaller phasing-out scale) to assist the Indonesian Police in sustaining the structures, procedures and approaches that have been introduced without the support of the IOM.

Food Security
Priority setting and investments by the Indonesian government and non-governmental actors, as well as support from donors and private sector parties, will be vital in jointly implementing and/or funding food security projects as they are re-established and extended on a national level. Training and good vocational education will be key, as well as creating the enabling environment within national and regional governments and new methods, like apps, to reach more and more farmers and fishermen.

In the next 2-3 years, the activities of Simavi (with the new SEHATI programme) and the second phase of the USDP are expected to contribute to further investments in and increased access to improved sanitary services. In view of the phasing out of Netherlands ODA support by 2020, projects are expected to further consolidate and institutionalise the results of the earlier programmes, based on solid transition plans. Increased roles for the private sector and the identification and mobilisation of alternative funds for necessary investments will, as part of the transition strategy, receive increased attention in the coming years. As agreed under the trilateral MoU signed in 2016, Dutch and Korean Technical Assistance have been mobilised to provide support in the preparation, by 2018, of a Final Investment Decision for long-term flood protection measures.

Financial summary

Total expenditure Embassy € 18,526,626

Expenditure 2016 per theme

Expenditure 2016 per channel