OBJECTIVE
The Program objective is to mitigate adverse impact of COVID-19 on health, livelihood and economy of Indonesia.
DESCRIPTION
This program is proposed to be supported under AIIB’s COVID-19 Recovery Facility (Facility) and co-financed by the Asian Development Bank (ADB) as a policy-based loan under its Counter-cyclical Support Facility Pandemic Response Option (CPRO). The program will provide critically needed support to help the Government of the Indonesia mitigate the severe health, social, and economic impact caused by the COVID-19 pandemic.
The Program is expected to have the following outputs: (i) additional allocation of social assistance programs for the poor and vulnerable implemented; (ii) dedicated fund for COVID-19 prevention and control established; and (iii) productive sectors safeguarded and manufacturing workers supported from the economic downturn.
ENVIRONMENTAL AND SOCIAL INFORMATION
The proposed program will be co-financed with the ADB as lead co-financier, and has been prepared in accordance with the provisions of ADB’s SPS applicable to policy-based lending.[1] To ensure a harmonized approach to addressing the environmental and social (ES) risks and impacts of the program, AIIB agrees that these provisions of the SPS will apply to this operation in lieu of the AIIB’s ESP, as permitted pursuant to a derogation approved by AIIB’s Board of Directors for Financings processed under the Facility.
Under its SPS, ADB has categorized the program as Category C for environment, involuntary resettlement, and Indigenous Peoples on the basis of an assessment of the countercyclical expenditures to be supported by the program. These focus on expanding and strengthening social safety nets for the most vulnerable groups and are not expected to have any adverse environmental or social impacts. The proposed program has also been categorized by ADB as “effective gender mainstreaming at entry”, as it strengthens the government’s response to the COVID-19 outbreak by addressing gender and social inclusion needs. ES monitoring will be conducted based on guidelines and check lists determined by ADB.
