Moving away from aid? The case of Indonesia

by Annalisa Prizzon, Andrew Rogerson and Maria Ana Jalles d’Orey
Overseas Development Institute (ODI), March 2017

28 pp. 1.4 MB

Over the past 15 years, 35 low-income countries have joined the ranks of the world’s middle-income countries: a reflection of the strong and sustained economic growth achieved in most parts of the developing world. As a result of this improved income status, every aspect of the development finance landscape is likely to change for those counties, from the sources of finance and financial instruments available to them, to the volume of aid and the conditions attached to it. This report focuses on how the Government of Indonesia has managed the transition from concessional to less concessional finance. Indonesia is now only eligible for loans from the World Bank’s ‘hard’ lending window, but the country’s graduation to this status has not been smooth.

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