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Linkage to Country/Regional Strategy |
The current country strategy paper for Indonesia (2006-2009) was developed to support the government's overarching goal of reducing poverty through economic growth with job creation and accelerated attainment of the Millennium Development Goals (MDGs). ADB identified the following five areas of engagement: (i) better infrastructure and infrastructure services, (ii) a deeper financial sector, (iii) more decentralized government functions, (iv) quicker achievement of MDGs, and (v) more robust management of the environment and natural resources. Governance and capacity development, both institutional and human, were also identified as key areas that ADB should support. The CSP identifies interventions in the finance sector in support of housing finance through the public sector in terms of developing the secondary mortgage market and through the private sector, specifically stating that potential operations could include development and enhancement of the mortgage market.
As part of financial sector development, ADB support for housing finance projects is embedded in a number of key strategic documents and business plans. ADB s Private Sector Development Strategy refers specifically to ADB's role in strengthening the finance sector, including housing finance, in DMCs. In 2006, PSOD's Financial Sector Development Business Framework noted that housing finance would continue to be one of the guiding themes in terms of developing the major components necessary for a healthy finance sector, while PSOD s Capital Markets and Financial Sectors Division s 2010 2012 Business Plan and Priorities also states that ADB will support housing finance projects. Finally, ADB s draft Financial Sector Action Plan highlights the need to support housing finance projects as part of financial sector development in ADB s DMCs. The Housing Finance Program is consistent with ADB s overall financial sector strategy in that it will assist in the development of a critical component of the Indonesian banking sector that has been to date highly underdeveloped.
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