ment Cooperation Indonesian-German Development ... - Gtz

Fostering Economic DevelopmentGerman Cooperation in the field of economic policy and marketreformGerman Financial and Technical Cooperationin the field of economic policy and marketreform generally assists Indonesia in the developmentof efficient instruments, institutions,and policies conducive to economicgrowth and the competitiveness of the Indonesianeconomy in a global market. It pursuesconcepts that finally aim at the creationof higher employment, the generation of income,and thus the alleviation of poverty. Atthe same time emphasis has been put on theecological sustainability of economic development.The economic, political and social crisis since1997 set the stage for structural and multidimensionaltransformation of the political andeconomic system. German Cooperation inevitablyoperated responsive to the outlinedenvironment and gradually had to adjust itsparadigm towards the assistance of the Indonesiangovernment in managing the crisis.Thus, major contributions were not onlymade through Financial (FC) and TechnicalCooperation (TC) but also using other instrumentslike Integrated Experts (CIM), theprograms of the Political Foundations and theGerman Foundation for International Development(DSE).In the broad field of Market Reform and EconomicPolicy the reform efforts of the IndonesianGovernment have been supportedwith the following programs:The Program (TC) Regional EconomicDevelopment (RED) provides an integrativeframework for various componentsin the areas of education and training,technology transfer, small and mediumenterprise promotion combinedwith regional strategies facilitating synergybetween economic, employmentand social policies. The program maintainspartnerships with key ministries,government agencies and relevant actorsin the private sector. In addition to theactivities at the national level the programfocuses on Central-Java as a pilotregion. Thus, the program not only respondsto the increasingly decentralizedpolitical environment and the growingimportance of local governments but alsoactively supports a participatory bottomup and top down approach to assist nationaldecision-makers formulatingsound policies. The local administrationsare supported in their new roles withspecial regard to economic policies.The Program (TC) for the Promotion ofSmall Financial Institutions (ProFI) aimsat improving the system of microfinance10 Indonesian – German Development Cooperation