The Millennium Challenge Corporation (MCC) and the Government of Indonesia signed a Compact on April 13, 2023, that seeks to address a binding constraint to economic growth: costly and underdeveloped financial intermediation ("Compact"). The Compact, which will include a $49 million contribution from the Government of Indonesia in addition to the $649 million of MCC grant funding, aims to unlock financing flows in a way that will catalyze economic growth and leverage Indonesia’s own resources.
The Compact will support three projects to address the binding constraint of costly and underdeveloped financial intermediation: the Advancing Transport and Logistics Accessibility Services (“ATLAS”) Project; the Financial Markets Development Project (“FMDP”); and the Access to Finance for Women-owned / Micro-, Small and Medium Enterprises Project (“MSME Finance Project”).
