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Revitalizing Indonesia's development cooperation as a diplomatic tool to advance foreign policy objectives
Indonesia’s development cooperation (IDC) has expanded over the past two decades but remains underutilized as a strategic instrument of foreign policy. Its effectiveness is constrained by the absence of a unified strategic vision, fragmented coordination, limited institutional capacity, and heavy reliance on state-budget funding. Revitalizing IDC requires a formal strategic framework, stronger coordination and institutional capacity, more responsive grant management, and diversified financing through mechanisms such as soft loans and blended finance. These reforms can strengthen IDC as a strategic pillar of Indonesia’s diplomacy while enhancing its contribution to global development.
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