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AKARTA: The World Bank has committed to channeling the eighth development policy loan (DPL), worth US$400 million for Indonesia’s state budget, toward supporting the three reform priorities of improving the investment climate, strengthening public budget management and enhancing poverty alleviation.

“Indonesia’s main challenge right now is not so much the design of appropriate policies or the raising of finance, but rather strengthening the institutions in charge of implementing those policies in order to enhance their developmental impact,” the Bank said in a press statement released on Wednesday.

To improve the investment climate, a dedicated team has been established for the Trade Ministry to formulate non-tariff measures that are designed in a transparent way, meet their objectives and are consistent with international trade agreements.

Meanwhile, the ultimate objective of the public financial management reforms is expected to set guidelines to separate treatments of baselines and new initiatives, procedures to propose and scrutinize new initiatives and make consistent plans and budgets.